Floods in Australia, limited impact on reinsurers

The floods that have severely hit North-Eastern coastal Australia will have a limited impact on reinsurers. The affected area, equal in size to France and Germany combined, has a low population density. In addition, floods are not part of standard householder's comprehensive cover.
According to experts, the economic repercussions are considerable but the insurance market should not suffer greater losses than those sustained during the hailstorms of March 2010 in Melbourne and Perth (1.5 billion USD for insurers). Initial estimates refer to approximately 1 billion USD of insured losses.