Australian floods costs insurers up to $1bn

(Re)insurers are preparing for large losses once the floodwaters recede in Rockhampton, Australia.

The water levels are expected to peak today, and a combined area the size of France and Germany remains flooded, according to reports.

JPMorgan analysts estimated early insured losses at AUS$1bn, based on partial flood coverage under property policies and none under crop policies.

The Australian mining sector faces potentially high losses. Approximately three quarters of Queensland's coal fields are unable to operate and around 12 mines are believed to be flooded.The Queensland Resources Council said the floods have already cost the coal industry more than AUS$1bn from lost production.