Insurance Australia Group (IAG) has assured investors of its preparedness to assist customers potentially impacted by Cyclone Alfred. The category-two tropical cyclone, with destructive winds exceeding 130km/h, was projected to affect the eastern coast, including Brisbane. IAG stated it has a “comprehensive reinsurance programme” established to safeguard premiums against potential payouts stemming from the cyclone’s damage.
This program is designed to mitigate financial risks associated with increased claims due to the severe weather event, ensuring the company’s stability and ability to support policyholders during this period. The deployment of the reinsurance program is a standard practice for major insurers during significant weather events, helping to distribute the financial burden and maintain operational capacity.
Further updates are expected as the cyclone progresses and its impact becomes clearer.
