There have recently been several significant weather events across Queensland, New South Wales, and Victoria, with Australian insurer IAG receiving over 10,000 claims—primarily related to motor and property hail damage—while its strong reinsurance protections have helped limit the financial impact.
“IAG has activated its Major Event Command Centre and deployed teams of property assessors and partner builders to conduct Make-Safe repairs and help customers across the impacted areas Our specialist Hail Repairers have contacted customers to begin repairs on hail-damaged vehicles.
“Using technology which combines real-time hazard intelligence with customer data, we have successfully prioritised emergency repairs and contacted customers who have yet to lodge a claim.
“Our teams have been on the ground in Jindalee, one of the worst-impacted areas in Brisbane, to help customers lodge their claims in person, and we are supporting vulnerable customers by providing temporary accommodation where necessary.”
IAG outlined that it has long-term reinsurance arrangements providing significant downside protection against natural peril events exceeding the full-year non-RACQI perils allowance of $1,316 million. In combination with whole-of-account quota share arrangements, IAG has approximately $1 billion of downside protection for non-RACQI natural peril costs.
With the acquisition of RACQI on 1st September 2025, IAG has maintained a separate standalone reinsurance program comprising quota share and catastrophe protections. This has capped the net costs of the first event—the severe storms and hail in South-East Queensland around 23rd October—to $65 million. Further protections reduce the net RACQI costs of a second event to $42 million, and to $33 million for a third and fourth event under the current standalone RACQI reinsurance program. IAG intends to integrate the reinsurance arrangements over time.
IAG retains its upgraded FY26 guidance, as outlined at the Annual General Meeting on 23 October.
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