As residents across South East Queensland and northern New South Wales begin the arduous task of repairing their homes and replacing vehicles damaged by ex-Tropical Cyclone Alfred, the insurance landscape is shifting dramatically. According to the Insurance Council of Australia, the claims count from the cyclone is expected to reach approximately 70,000, primarily for homes that sustained serious damage in Queensland. This comes in the wake of the cyclone making landfall on March 7, 2025, with recovery efforts quickly mobilized across the affected regions.
Mark Mellor, National CAT Manager for Crawford & Company Australia, detailed the ongoing recovery efforts, expressing that, “You could say we’re right in the thick of it!” By March 21, Mellor noted that the work was still vigorous and predicted that it wouldn’t dwindle for some time. Initially, after the cyclone, he commented on March 9 that perhaps the effects weren't as catastrophic as anticipated due to the cyclone losing strength as it approached land, thus mitigating potential damage and flooding.
However, the aftermath saw neighborhoods like Emerald Lake on the Gold Coast facing extreme challenges, becoming completely submerged by flooding. Approximately 50,000 people across the area experienced power cuts, further complicating recovery efforts. As Mellor explained, the bulk of claims being processed relate to residential properties affected by storm damage, including leaking roofs and structural issues rather than direct flood damage.
Moreover, many small businesses also reported damages—primarily due to water ingress—but larger commercial properties have largely escaped severe harm. Coastal areas like the Gold Coast and Sunshine Coast dealt with beach erosion due to the cyclone, an impact that is expected to be repaired relatively quickly.
The affected zone spanned over 500 kilometers along Australia’s east coast, creating logistical challenges and delays in recovery. Although a significant number of residents have returned to their homes and electricity has been restored, some areas still suffer from flooding. Mellor noted that areas like Ingham faced new flooding the week of March 17, resulting in further road closures, specifically along the Bruce Highway, which led to increased difficulties in accessing supplies for recovery.
In the midst of these challenges, another issue has arisen: disaster chasers. Insurance brokers are being urged to alert clients to the risk of scam operators promising quick claims processing and inflated payouts in exchange for fees. Julie Batch, CEO of NRMA Insurance, emphasized that these disaster chasers exploit vulnerable homeowners after devastating events like Cyclone Alfred. “It’s a sad reality that disaster chasers mobilise quickly after an extreme weather event like ex-Tropical Cyclone Alfred and seek to take advantage of already distressed and vulnerable people,” she stated.
These operators often appear shortly after a disaster, applying pressure on homeowners to sign contracts and, at times, demanding upfront payments. There have been documented cases where these chasers fail to complete the work or vanish altogether, leaving homeowners in difficult situations. In other instances, they fabricate documents and mislead clients about insurance payouts by adjusting bank account details.
To combat these scams, NRMA Insurance recommends that brokers remind their clients that representatives from insurance companies will only visit once a claim has been lodged and confirmed. Clients should verify any individuals claiming to be sent by their insurer and report any suspicious behavior immediately.
“You can lodge your claim with NRMA Insurance online or over the phone at a Recovery Centre or via one of our mobile service vehicles,” Batch reiterated, highlighting the importance of legitimate communication channels when dealing with insurance claims.
As the recovery efforts move forward, both insurers and residents find themselves navigating through the lingering effects of ex-Tropical Cyclone Alfred. The insurance professionals, while involved in intense recovery operations, are also tasked with safeguarding their clients from potential fraud during a vulnerable time.
In conclusion, while significant progress has been made in addressing the damage caused by Cyclone Alfred, the threats of disaster chasers underscore the need for vigilant and informed approaches to recovery. As the situation continues to unfold, community resilience will be crucial in overcoming these challenges.
