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.
Fresh attention on cyber incidents across Australian businesses is a timely warning for restaurants, cafés and takeaway operators. Hospitality venues may not always see themselves as data-heavy businesses, but modern food service increasingly depends on connected systems: point-of-sale terminals, booking platforms, delivery apps, QR ordering, loyalty databases, rostering tools and cloud accounting. - read more
Recent heavy vehicle compliance activity has again put fatigue management near the top of the risk agenda for Australian transport operators. While enforcement is usually framed as a road safety issue, it also has a direct insurance dimension. Insurers assessing truck insurance risk increasingly look beyond the vehicle itself and ask how well the business controls driver behaviour, scheduling pressure, maintenance downtime and record-keeping. - read more
APRA’s latest general insurance data has again highlighted a point many Australian tradies are already feeling at renewal time: a healthier insurance sector does not necessarily translate into simple or immediate premium relief for small businesses. While insurers continue to operate with stronger capital buffers and improved underwriting discipline, the costs sitting behind many policies remain under pressure. - read more
Fresh complaints reporting from the Australian Financial Complaints Authority has put insurance service standards back under the microscope, with claim delays, communication issues and disputed outcomes continuing to feature in the wider financial services complaints landscape. For beauty salon owners, skin clinics, nail technicians and mobile beauticians, the lesson is practical: the moment a loss occurs is not the best time to discover that records are incomplete, policy wording is unclear or a treatment has not been properly disclosed. - read more
New South Wales insurance buyers may be heading for an important change as reform of the Emergency Services Levy continues to attract attention across the insurance sector. The levy has long been added to many insurance premiums in NSW to help fund emergency services, and insurers have argued that this approach makes cover more expensive for households and businesses that choose to insure. - 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
Car insurance is an essential expenditure for any vehicle owner, but are you truly aware of all the costs involved? Many Australians focus solely on the premiums, overlooking additional charges that can significantly impact their budget. Understanding these hidden costs is crucial to avoid an unpleasant surprise. - 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
Car insurance is an essential part of owning a vehicle in Australia, providing financial protection and peace of mind. Standard coverage typically includes protection against collision damage, theft, and various liabilities. However, the world of car insurance doesn’t stop here; enter the realm of 'extras' - additional options that go beyond the basics. - 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
Knowledgebase
Claim: A formal request made by the policyholder to the insurance company for payment of a loss covered by the insurance policy.
No comments yet. Be the first to share your thoughts.