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.
In a significant development for policyholders, TAL has expanded its Health Sense Plus program to encompass income protection (IP) policies. This initiative, effective from August 8, 2025, aims to incentivise proactive health management by offering premium discounts to clients who engage in preventative health checks. - read more
Australia's insurance sector is facing unprecedented challenges as mental health conditions have become the leading cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) reveals that mental health issues now account for nearly one-third of all TPD claims paid out. - read more
Shine Lawyers has initiated class action proceedings in the Federal Court against Rest Superannuation, alleging that the fund wrongfully deducted income protection premiums from members' accounts between December 2008 and June 2019. The lawsuit claims that up to 500,000 Rest members may have been affected by these deductions. - read more
Marine Skippers Insurance has recently unveiled a new international coverage plan tailored for captains navigating vessels to and from Australia. This development is particularly timely, coinciding with preparations for the upcoming Sydney to Hobart yacht race. - read more
NM Insurance has solidified its position in the marine insurance sector by entering into a five-year agreement with capacity provider Zurich. This strategic partnership is set to bolster NM Insurance's growth trajectory and instill greater confidence among brokers. - read more
Filing a car insurance claim can be a complex and overwhelming task. Understanding the process is crucial to ensure that everything goes smoothly and you get the compensation you deserve. - read more
Car insurance is an essential part of owning and driving a vehicle, providing protection and peace of mind on the road. While most Australians are familiar with the basic coverage options, understanding the finer details of premium calculations can be quite complex. One of the key factors influencing these calculations is age. - read more
Car insurance is a crucial aspect of owning a vehicle, providing financial protection in case of accidents, theft, and other unexpected events. However, finding the right balance between affordability and adequate coverage can be a challenging task. - 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
When it comes to protecting your vehicle and your finances, car insurance is a crucial investment. In Australia, car insurance helps cover the costs associated with accidents, theft, and other unexpected events on the road. - read more
Knowledgebase
Insurance broker: An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.
