I think you're forgetting about suncorp reinsurance programmes. For large wether events, the Swiss pick(swIss re ect) pick up the tab after the first few 100m. for the insurer, the aim of the game is to get the work started as soon as possable so they can pass on the bill to the reinsurerence companies.
Ann: HY18 Appendix 4D, page-26
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