THE insurance sector has paid out more than $1.6 billion in claims to victims of Cyclone Yasi and the devastating floods that struck Queensland early this year.
More than 126,000 claims worth an estimated $3.66bn have been received by insurers: 69,497 claims due to Cyclone Yasi and 57,191 due to the floods..
IAG insurance has already paid out net claims to the value of $300 million.
The bulk of the claims are expected to be handled by Suncorp, which expects to pay out about $1.2bn for cyclone and flood cover.
"The response and sheer number of claims received and processed shows the insurance industry is strong and responding well to recent disasters," Insurance Council of Australia chief executive Rob Whelan said.
"The number of claims already paid demonstrates the importance of a responsive and secure insurance industry able to appropriately determine claims."
The ICA estimates that about 99 per cent of residential claims relating to the natural disasters have already been assessed and determined.
Although 55 per cent of residential property claims have been finalised following completion of repairs or provision of cash settlements, complex construction on the remaining properties means it will still be "many more months" before all repairs are completed.
The ICA is also expecting about 700 disputes to be heard by the financial ombudsman, most of which will relate to denied cover.
The claims have squeezed the earnings of local insurers who have said costs of payouts would affect short-term profitability.
Insurers have told a recent government inquiry into natural disaster insurance that there needs to be more focus on mitigation work to lower the risk in flood and cyclone areas.
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