Insurance Australia Group Limited (IAG) has confirmed that it currently expects to pay between A$25 million and A$35 million (US$20.2 to $28.3 million) to customers affected by the recent storms in south-east Queensland and Northern New South Wales.
Its operating businesses, NRMA Insurance and CGU, have received around 4,000 claims as of the 2nd of June 2009. The majority of the claims relate to property damage, mostly “damage to plaster, paintwork, carpets and contents,” along with some commercial and motor vehicle damage.
IAG Managing Director and CEO Michael Wilkins, said both NRMA Insurance and CGU were focused on assisting customers affected by the storms, and that their “main priority is helping our customers.”
Wilkins noted that the storms would not trigger the Group’s main reinsurance program, which currently has a maximum event retention of A$75 million (US$60.6 million) for Australia. However, it will contribute to the erosion of the deductible of the Group’s aggregate cover.
He explained that IAG has reinsurance cover of A$150 million (US$121.2 million) for aggregate events over A$150 million. To date, events that contribute to the aggregate cover total around $100 million including the Victorian bushfires, the Coffs Harbour storms and this most recent event.
Source: Insurance Australia Group – www.iag.com.au
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