Couple of points on the insurance issue… most important is to not book any alternative flights unless you have contacted the insurer’s claims line and sought advice. They may or may not cover a replacement flight depending on the policy, but if they do, they will almost certainly want to look at options and work with you on a replacement. For example looking at a last-minute one way fare for this Thursday from SYD to LHR, Thai business class is $5700, Qantas and Emirates is $10600. Insurance may decide Thai Airways is ok for you!
As for insurance and points, again it depends on the policy, but many will calculate the value of your lost points against a standard revenue fare. So at today’s prices, if you ‘lost’ 126000 QFFF points on a one way ticket to london, they’d use a relevant Qantas business class fare to calculate the cost of the points, and your claim.