Cyclone Yasi's insured losses up to US$1.5bn

Insured losses from Cyclone Yasi, which battered Eastern Australia, are estamed at between US$354m and $1.5bn, according to AIR Worldwide Estimates.

Dr. Vineet Jain, principal engineer at the catastrophe modelling firm, said: "In the aftermath of the most powerful cyclone to strike Australia’s east coast since 1918, many residents are expressing relief; while the storm was indeed damaging, its impact on heavily populated areas along the country’s northeast coast was less than expected.”

According to AIR, throughout Queensland and affected areas, newer commercial buildings sustained only minor structural damage, illustrating the effectiveness of Australia’s building code even in the face of such a major storm.

Non-engineered residential structures performed less well, with some sustaining major structural damage, mostly to roofs.

The towns of Tully and Cardwell were particularly hard hit, with many buildings sustaining significant structural damage, particularly caravans which are quite vulnerable to high wind-speeds.

Meanwhile, flooding is a major concern in Townsville, Ingham and Giru. Cairns, with a population of over 160,000, was spared major damage, though more than 65 per cent of homes there are without power.

Dr Lain said: “Losses from Yasi may well exceed those from Cyclone Larry in 2006.

“Larry, which followed a similar path to Yasi, though it tracked slightly to the north and had less intense winds—caused insured losses of about AUD 540 million (in 2006 AUD), according to the Insurance Council of Australia, which lies within the estimated range posted by AIR in real time in 2006.”