Meanwhile, new research from the Australia Institute found almost one in five Australians’ homes are under-insured or uninsured, as experts in climate risk and justice warn more frequent natural disasters could push up insurance premiums — or see cover withdrawn.

Concern for regions in Alfred’s path

Tropical Cyclone Alfred is set to hit south-east Queensland and northern NSW’s coastlines, with damaging winds, flash flooding and dangerous storm times predicted.

“We’re in a situation where there are places where we are used to getting cyclones — the northern part of Australia. But as waters warm, the range that a tropical cyclone can reach starts to spread more south,” he said.

Locals at Currumbin on Queensland’s Gold Coast preparing for the arrival of Cyclone Alfred. Source: AAP / Jason O’Brien

“In places where we’re used to getting cyclones, we have building codes that are designed to cope … but in south-east Queensland, the properties are not designed to cope with very strong tropical cyclones.”

“We’re not used to seeing a cyclone this far south and a population centre this massive,” he said.

Rising premiums and withdrawing cover

He said this could lead to either significant increases in insurance premiums — or insurers withdrawing cover in certain areas.

One in five Australians ‘uninsured or under-insured’

“Australian families are facing an almost impossible choice when it comes to home and contents insurance,” senior economist Matt Grudnoff said.

‘Knock-on’ effect and a ‘new normal’

“We need to recognise that this may be a new normal that we’re going to have to adapt to, and we really need to start to prepare community and property to cope with this new environment — otherwise we’re going to see communities, towns, cities where unaffordable insurance becomes the norm.”

“At the moment, I think we’re in danger of responding in a way that really compounds the problem that the natural disasters are creating.”

What are insurance companies saying about Alfred?

Insurance companies went under the microscope following the 2022 floods, with a federal parliamentary inquiry concluding the industry “failed too many people” with delays in communication, poor claim management and other issues uncovered.

Treasurer Jim Chalmers said he has been in touch with the major insurance companies about preparations for Cyclone Alfred. Source: AAP / Lukas Coch

On Tuesday, the ICA said insurers are “on standby” to respond to Alfred.

“Given the anticipated high volume of claims, there may be some delays, but rest assured we are here to help.”

— With additional reporting from the Australian Associated Press