Insurers have experienced a dramatic 49.4% drop in profits, with annual industry data reporting a $2.36 billion gap caused by claims from weather events around Australia.
Gross claims increased by 26.9%, moving from $26.4 billion to $33.5 billion for the year to 30 September, according to the latest figures released by the Australian Prudential Regulation Authority (APRA).
The report states that the gross incurred claims were hiked by claims relating to catastrophe events during the past year, including hailstorms in Brisbane in November 2014, as well as storms in Sydney and Queensland in April.
Although gross written premium (GWP) increased from $41.76 billion to $42.84 billion, the net loss ratio for direct insurers jumped from 62% to 70%.
Access the entire Quarterly General Insurance Performance Statistics report here.