Australian insurers are facing a massive US $ 1.6bn in claims following the recent floods and extreme weather crisis to hit the state of Victoria .

The Insurance Council of Australia ( ICA ) declared a catastrophe for regions affected by significant storms and flooding , which serves to escalate and prioritise the insurance industry ’ s response for affected policyholders . The worst affected area , Traralgon , saw high winds and torrential rain which resulted in the town ’ s creek breaking its banks . Australian insurers also faced a $ 1.3bn bill following the catastrophic bushfires in 2020 .