The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Suncorp Group has unveiled an increased reinsurance protection limit, now extending up to $6.75 billion.
Despite this expansion, the total expenditure on the program is expected to mirror last year’s spending, thanks to balancing mechanisms.
Group CEO Steve Johnston expressed satisfaction with the rebalancing of global reinsurance markets after several tumultuous years. "Reinsurance significantly influences the pricing of our insurance products," said Johnston. "Alongside inflation impacting the broader economy, this has contributed to higher insurance premiums in both Australia and New Zealand."
This new protection ceiling exceeds the regulations set by Australian and New Zealand authorities, marking an increase from last year’s $6.4 billion limit.
Noteworthy adjustments in Suncorp's program involve the non-renewal of a quota share agreement for Queensland’s home insurance, attributable to the federal government’s cyclone reinsurance pool. Innovations in risk selection and pricing have notably enhanced resilience. Prior to this, Suncorp had transferred 30% of its Queensland home portfolio to mitigate regional risk concentration.
The company maintains a maximum event retention of $350 million for an initial large-scale event and $250 million for subsequent incidents. The central catastrophe program encompasses home, motor, and commercial properties across both Australia and New Zealand.
Mirroring the previous year, the group has procured drop-down covers to lessen retention costs for the second, third, and fourth events to $250 million. Additionally, the Australian drop-down arrangement still reduces retention for the third and fourth events to $150 million.
New Zealand’s increased retention denotes ongoing ramifications of early last year’s severe weather on reinsurance economics and availability in the region.
Furthermore, full placement of buy-down cover, which includes a prepaid reinstatement, is secured to offer protection between $NZ200 million ($182 million) up to the group’s maximum retention. This is an upgrade from last year’s partial placement of 52% with an attachment point at $NZ100 million ($91 million).
With the anticipated completion of Suncorp’s bank sale on July 31, Johnston commented, "Our renewed reinsurance program places us in a strategic position to evaluate additional covers that may be beneficial."
Suncorp forecasts an increase in its natural hazard allowance to $1.565 billion this fiscal year, from last year’s $1.36 billion, with previous year’s perils costing approximately $1.23 billion. This hike reflects growth in unit numbers, inflation, and enhanced risk retention due to reinsurance modifications.
The insurer remains committed to incorporating its reinsurance costs and natural hazards allowance into the pricing of insurance policies, aiming to sustain its insurance margin within a range of 10%-12%.
Expected to be released on August 19, Suncorp projects its underlying margins for the last financial year to settle around the midpoint of the 10%-12% range. A late-December weather incident drove reserve fortifications for the second half of the year, influenced by supply chain issues and holiday timing affecting claim submissions, altering typical claim patterns and durations.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Recent transport and fleet industry coverage continues to point to a steady increase in electric and low-emission heavy vehicles across Australian logistics operations. For many operators, the attraction is clear: quieter vehicles, lower tailpipe emissions, potential fuel savings and stronger alignment with customer sustainability targets. But the insurance conversation is now becoming more detailed than simply replacing a diesel truck with an electric one. - read more
APRA’s latest quarterly general insurance statistics point to a market that is still under cost pressure, even as insurers continue to report stronger overall results than during the worst of the recent claims cycle. For Australian tradespeople, the headline is not simply whether insurers are profitable. The practical issue is how rising premiums, repair costs, reinsurance expenses and claims activity flow through to the price and availability of cover used every day on the tools. - read more
Australia’s financial advice reform agenda has taken another important step, with industry attention turning to how simpler, more accessible guidance could help consumers make better decisions about insurance. For workers who rely on income insurance or salary continuance cover, the issue is more practical than political: many people hold cover they do not fully understand until illness or injury forces them to test it. - read more
Recent transport and insurance industry attention on lithium-ion battery safety is a timely warning for Australian truck operators. The issue is no longer limited to consumer products catching fire in homes or warehouses. Batteries now move through freight networks in tools, scooters, e-bikes, electronics, spare parts and energy storage equipment, and that creates a different risk profile for carriers, depots and subcontracted linehaul work. - read more
Australia’s latest seasonal bushfire outlook is a practical reminder that fire risk is not confined to the height of summer. For many farms, the exposure begins well before a catastrophic fire day is declared, as grass growth, drying winds, stored fodder, machinery movement and access limitations combine to create a more complex risk profile than a standard rural home policy can address. - read more
Car insurance is a critical aspect of vehicle ownership that can save you from financial distress in case of accidents, theft, or damage. For Australian consumers, understanding the ins and outs of car insurance is essential for ensuring that you're adequately protected without overpaying for your coverage. - read more
Your driving habits can influence how an insurer assesses your risk and prices your car insurance premium. In Australia, factors such as speeding, accident history, annual kilometres, personal or business use, where you drive and whether you use driving-feedback technology may all affect the way your policy is assessed. - read more
Choosing car insurance in Australia is easier when you understand what each policy type is designed to cover. Comprehensive car insurance offers broader protection for your own vehicle and other people's property, while third party property cover is more limited and usually focuses on damage you cause to others. - read more
Understanding the car insurance claims process can help Australian drivers respond calmly after an accident, gather the right evidence, manage excess and repair questions, and know what to do if a claim is delayed or disputed. - read more
Car safety has come a long way since the early days of motoring. Initially, vehicles had minimal safety features, and accidents often led to severe injuries or fatalities. Over the years, technological advancements have significantly improved the safety of cars, making them much safer for drivers and passengers alike. - read more
Knowledgebase
Proximate Cause: The primary cause of loss in an insurance claim, which sets in motion a chain of events leading to the damage or injury.
No comments yet. Be the first to share your thoughts.