Safeguarding Australian schools: A QBE education sector report
- As a leading insurer of independent schools in Australia, QBE helps safeguard the education of nearly one million students.
- A new QBE report* analyses a decade of claims data to highlight the changing face of school insurance and the emerging risks schools must be aware of.
- Over 80% of property insurance claims are caused by extreme or catastrophic weather, with some states impacted far more than others.
After compulsory education was introduced in Australia in the late 19th century, each state and territory went on to establish its own education system by the early 1900’s. Over time, those systems evolved to what we have today: a diverse, dynamic structure responsible for educating more than 4 million Australian students across government and non-government schools.
Education industry at a glance
The majority of Australian students (64%) attend government schools, followed by 19.7% who attend Catholic schools and 16.3% who attend independent schools — a combination of Christian and other faith-based schools, special needs schools, private education providers, and alternative systems such as Montessori and Steiner schools.
Over the five years to 2023, total student enrolments increased by 3.5%. Independent schools recorded the largest increase (14.1%), followed by Catholic schools (4.8%) and government schools (0.7%).
As a leading insurer of independent schools in Australia, QBE is uniquely placed to closely examine the changing face of school insurance. A brand-new report analyses a decade of QBE claims data to highlight the patterns and emerging risks that schools may face.
“We’ve lifted the lid on QBE insurance claims over the past decade. By examining and comparing claim types, annual and monthly claims figures, and state-by-state comparisons, we’ve provided a comprehensive overview of insurable events that have impacted non-government schools across Australia,” said Bob Algie, Head of Industrial Verticals, QBE Australia Pacific.
Understanding school insurance
Schools in Australia require various insurance policies to ensure their staff, students and visitors are covered for potential risks and liabilities. The specific requirements differ from state to state but will include a combination of both mandated and recommended policies designed to cover property insurance, public liability insurance, workers compensation, professional indemnity insurance, and motor fleet insurance.
Related article: Essential insurance and risk management strategies for Australian schools
Protecting our schools in a changing environment
The report found that almost 80% of school property claims are due to extreme and catastrophic weather events — namely storms, fires, and floods. This figure is increasing as more extreme weather patterns and catastrophic events impact Australia.
The impact these extreme weather events have on insurance claims is telling. Eight of the past ten years have been declared an El Nino or La Nina weather pattern in Australia, including the rare and destructive “triple-dip” La Nina that extended from 2020-2023.
During this period, parts of southeast Queensland and NSW were devasted by severe weather and widespread flooding. One particular catastrophic weather event in February 2022 resulted in school claims more than double the next closest year — over $41 million in school claims, as opposed to $15 million in 2014.
This, combined with further data contained in the report, emphasises the increasing severity of weather-related incidents and highlights the need for schools and insurers alike to prepare to mitigate and minimise weather-related damage wherever possible.
“Over the past decade, QBE has paid out more than $75 million in claims to Australian schools impacted by the ‘Big Three’ — storms, fires and floods,” – Stephen Geisler, Head of Corporate, Financial Lines and Multinational, QBE Australia Pacific .
What does the data tell us?
Analysis of total claims over the past decade offers revealing insights into annual patterns, average property claims and state-by-state comparisons.
February is the most damaging month
If we break down our claims data by month, February accounts for more than a quarter (27%) of all school claims made over the past ten years. This is partly due to the increased likelihood of extreme weather events occurring in February, along with the associated storms, rain and wind. It’s also due to the fact that schools reopen in February after the summer break, often revealing maintenance issues or equipment failures that have gone unnoticed over the holiday period.
Largest property claim
The largest property claim over the past ten years was $4.6 million. It was paid to a Queensland school in 2014, following extensive damage from a catastrophic weather event.
State-by-state comparison
The 10-year analysis highlights that Queensland schools sustains the most damage, predominantly due to storm and cyclone activity. Tasmanian schools rank second, largely due to a series of smaller but highly damaging storms and flooding events, while Northern Territory schools rounds out the top three, with cyclones again a significant factor.
The average school claim in Queensland is approximately $100,000, with Tasmania at $69,000 and NT $59,000. The state with the lowest average claim is South Australia sitting at around $21,000.
Notably, the past three years have been the most challenging for Queensland schools, with a significantly higher number of claims than previous years. This, combined with earlier data, emphasises the increasing severity of weather-related incidents and highlights the need to work with insurers to mitigate and minimise future damage as much as possible.
Download QBE’s Safeguarding Australian Schools report
For more in-depth insights on Australia’s compulsory education sector, as well as key focus areas for future risk minimisation, download a copy of our latest report.
Download the report Explore QBE’s Resilience Series
* This article contains insights from QBE’s Safeguarding Australian Schools report. For more detailed information and references, please refer to the full report.
