Local Weather Events Drive Major Insurance Losses in 2025

Extreme weather events affecting the Whitsundays and Mackay regions contributed to a costly year across Queensland, with new figures showing insured losses from extreme weather reached almost $3.5 billion nationally in 2025.

According to data released by the Insurance Council of Australia, North Queensland flooding early last year was one of five major events declared significant or catastrophic, with impacts felt across coastal and regional communities, including parts of the Mackay and Whitsundays.

The North Queensland floods, which occurred between late January and mid-February 2025, generated more than 11,700 insurance claims and an estimated $304 million in insured losses. Heavy rainfall, river flooding and widespread inundation caused damage to homes, businesses and infrastructure, disrupting transport and agriculture across the region.

Later in the year, severe storm activity across Queensland also had flow-on effects for Central and North Queensland communities. While the most destructive hailstorms were concentrated further south, insurers noted that statewide weather systems placed ongoing pressure on claims services and recovery resources.

The data highlights the growing unpredictability of extreme weather. By comparison, insured losses totalled $581 million in 2024 and $2.35 billion in 2023, underscoring how dramatically annual costs can vary.

To support recovery, insurers coordinated community consultation sessions and deployed Insurance Hubs following major events. Insurers have warned that final costs from 2025 events may continue to rise as late claims are lodged.

The trend has continued into 2026, with monsoonal conditions already affecting parts of North Queensland. Insurers say they are prioritising claims and maintaining an on-the-ground presence in affected communities.

For regions like Mackay and the Whitsundays, the figures are a stark reminder of the increasing financial and environmental toll of extreme weather—and the importance of preparedness as communities face another wet season ahead.

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