Images shared by Tom Smith, the Labor Member of parliament for the State Electorate of Bundaberg, during the flooding disaster in the area. Source: Tom Smith/Facebook
Insurers are bracing for millions in claims after flood defences left hundreds of properties underwater across Queensland and the Northern Territory.
The Insurance Council of Australia declared two “Significant Event” situations, on Thursday escalating the industry’s response in Queensland around Bundaberg and the Burnett River, and in the NT including Katherine and surrounding regions.
Severe Weather alert in Queensland. Source: Qld Govt
Flood-hit residents have started lodging insurance claims as the ICA activated catastrophe claims monitoring and real-time tracking of claim volumes and losses, but insurers say it remains too early to calculate total costs.
Insurance Council CEO Andrew Hall said insurers’ first priority was community safety.
“We strongly encourage everyone impacted by these flood events to avoid any activity that could put their safety at risk,” he said.
“Our advice to affected policyholders is to lodge a claim as soon as you can, even if you don’t yet know the full extent of the damage. Lodging via your insurer’s online portal is generally the quickest way to get the process started.”
Mr Hall flagged the need for greater investment by “all levels of government” to reduce future damage, warning over the wide gap between existing flood protection and what’s needed on the ground.
“Communities in the NT and along the Queensland coast have long lived with flood risk, but the gap between what’s been built to protect them and what’s needed remains far too wide,” he said.
“These events are another reminder that all levels of government must invest in resilience before disaster strikes, not just recovery after the damage is done.”
Inside the Bundaberg flood event. Source: Tom Smith/Facebook
In Bundaberg, a $174.7 million flood levee designed to protect the CBD and eastern suburbs from 2013-level floods began construction in early 2025 – but remains unfinished as residents face their fourth inundation in 15 years, according to the Queensland Reconstruction Authority.
The 1.7-kilometre concrete levee, jointly funded by federal and state governments, was expected to reduce insurance premiums by up to 27 per cent once completed – significant relief for Bundaberg East residents who currently pay an average of $11,613 per year for home insurance, nearly five times the national average, according to insurance industry data.
In Katherine, government documents show a $25 million flood mitigation project saw a levee protecting the town’s northern suburbs completed in late 2022. But it was designed for 1-in-20-year floods – and last week’s event was the worst in more than 20 years.
A second levee for Katherine South has been planned with $10 million in funding committed by federal and territory governments, according to NT Government announcements.
Northern Territory Infrastructure Minister Eva Lawler has previously stressed that no levee can be “100 per cent floodproof”, reminding residents to remain prepared for extreme events.
Bridges were covered by floodwater across Bundaberg, cutting off communities. Source: Tom Smith/Facebook
Both the Australian and state governments have activated disaster recovery assistance under the Disaster Recovery Funding Arrangements, with payments of up to $8,843 per household available to help replace essential items like whitegoods, furniture and bedding.
This as the Burnett River in Bundaberg peaked at 7.4 metres on Monday, according to the Bureau of Meteorology, with Bundaberg Regional Council Mayor Helen Blackburn telling media that “a few hundred homes and properties” had been affected.
Queensland Premier David Crisafulli said 197 people spent Monday night in evacuation centres and approximately 2,000 homes were without power.
Mayor Blackburn said the full extent of flood impacts wouldn’t be known for about a week.
The region has been flooded four times in just 15 years, with previous major inundations in 2010, 2011 and 2013 – the latter seeing over $1.1 billion in insured losses in today’s dollars when over 4,000 homes went underwater, according to Insurance Council data.
In Katherine, emergency authorities reported the Katherine River reached 19.2 metres last Friday – its highest level in at least 20 years – forcing the evacuation of Katherine Hospital, closing schools and cutting major highways.
National Australia Bank described the event as the “toughest flooding in almost three decades” for the region as it activated disaster relief grants for affected customers.
The 2022 eastern Australia floods, which also impacted the Bundaberg region, became the country’s most expensive flood event at over $6 billion in insured losses, according to Insurance Council data.
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