FEB/MAR 2019 - Insurance News (the magazine)

Page 44

and tornadoes – though the conditions that can produce thunderstorms are more random and “stochastic”, and difficult to characterise than, say, tropical cyclones. The research team has also investigated crop damage. While in the US tornadoes garner much attention, a tornado track might be only a kilometre or so wide and they are quite short-lived. A hail track is generally wider and hailstorms are more frequent. While farmers can’t do a lot with warnings except cover up equipment and themselves, Dr Soderholm says there is value in having information on frequency of hailstorms, because this helps to better inform insurance companies about risk. The WeatheX app and new radar will go some way to redressing the disproportionate investment in understanding bushfires and flooding compared with hailstorms, despite the headache numerous small hailstorms and giant hail events inflict on the insurance industry. “People don’t consider it life-threatening and people don’t see hail as a problem for communities, more a problem for insurance and industry,” Dr Soderholm says. “But it costs the country a lot of money.” 0

Big problem: hailstones above 6cm diameter can cause serious damage

Top five insured loss events normalised in 2017 dollars 1999

Sydney hailstorm

$5.6bn

1974

Cyclone Tracy

$5bn

1966

Cyclone Dinah

$4.7bn

1989

Newcastle earthquake

$4.2bn

1973

Brisbane flooding

$3.2bn

Top 10 hailstorms, normalised in 2017 dollars (excluding December 2018 event) 1999

Eastern Sydney hailstorm

NSW

$5,574,498,958

1985

Brisbane hail

QLD

$2,274,272,916

1990

Northern Sydney hailstorm

NSW

$1,681,692,745

2010

Melbourne storm

VIC

$1,625,980,165

1967

SEQ hailstorm

QLD

$1,595,957,781

2014

Brisbane hailstorm

QLD

$1,535,440,024

2010

Perth storm

WA

$1,344,798,983

2011

Melbourne Christmas Day hailstorm

VIC

$987,926,516

1986

Western Sydney hail event

NSW

$795,963,895

1976

Western Sydney hailstorm

NSW

$749,612,517

2016

November hailstorm

VIC, SA & NSW

$621,470,779

2007

Blacktown hailstorm

NSW

$586,787,347

Information supplied by the Insurance Council of Australia

Gathering data: hail expert Joshua Soderholm 44

insuranceNEWS

February/March 2019


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