According to analysts at ANZ, the scale of the natural devastation in Australia through this bushfire season is unimaginable and the fire season is not yet over.
Key Quotes
“Early assessments suggest the damage to physical capital, as a share of GDP-producing capital, will not be large enough to have an reinsurance flow impact on the AUD.”
“Current insurance costs are 700m (ICA Media Release, 7 Jan 2020), with expectations that this could rise further. Even if insurance costs were substantially higher than that estimate, the total would be around 1% of GDP.”
“Should the fires end up impacting the AUD, it is more likely to be through its impact on the economy.”
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