Suncorp has withdrawn from writing new cover in parts of Queensland
following last year’s floods,
Part1 Part2 Part3 Part4 Part5
with Personal Insurance CEO Mark Milliner telling governments to get moving on disaster mitigation.
Mr Milliner says Suncorp has resisted following other insurers in ceasing to offer insurance in very high risk areas.
“However, the lack of progress means we now feel that we have little choice but to proceed down this path unless clear decisions are made to build or implement improved mitigation to protect the residents of these towns,” he said.
Mr Milliner says Suncorp has stopped writing new business in Roma and Emerald in western Queensland after paying out $150 million in claims and receiving $4 million in premiums in the last two years.
He says Queenslanders can expect premiums to continue to rise and cover to be restricted if there is no urgent action on disaster mitigation.
“The reality is, with increasing global reinsurance costs and repeated flooding there is real potential for pricing to rise drastically to the point of being too expensive for those most at risk,” he said.
Suncorp’s assessors and repairers are visiting some homes in Roma for the third time in as many years due to continued flooding.
“Not building a $2 million levee in Roma seven years ago has come to a $500 million public and private sector repair bill, and this comes back to local residents through increased rates, increased utility costs and higher insurance premiums,” Mr Milliner said.
He says recent flooding in Wagga Wagga highlighted the power of levees, with estimated damage costs reduced by $100 million due to work completed there.
If mitigation takes place, Suncorp will reassess premiums and has already done so in areas such as Goondiwindi, where premiums for high-risk customers were reduced by $1000 after a levee was built.
“Our preliminary examination shows that, on average, appropriate mitigation lowers premiums by about 50% in towns at risk of flood,” Mr Milliner said.
Part1 Part2 Part3 Part4 Part5
with Personal Insurance CEO Mark Milliner telling governments to get moving on disaster mitigation.
Mr Milliner says Suncorp has resisted following other insurers in ceasing to offer insurance in very high risk areas.
“However, the lack of progress means we now feel that we have little choice but to proceed down this path unless clear decisions are made to build or implement improved mitigation to protect the residents of these towns,” he said.
Mr Milliner says Suncorp has stopped writing new business in Roma and Emerald in western Queensland after paying out $150 million in claims and receiving $4 million in premiums in the last two years.
He says Queenslanders can expect premiums to continue to rise and cover to be restricted if there is no urgent action on disaster mitigation.
“The reality is, with increasing global reinsurance costs and repeated flooding there is real potential for pricing to rise drastically to the point of being too expensive for those most at risk,” he said.
Suncorp’s assessors and repairers are visiting some homes in Roma for the third time in as many years due to continued flooding.
“Not building a $2 million levee in Roma seven years ago has come to a $500 million public and private sector repair bill, and this comes back to local residents through increased rates, increased utility costs and higher insurance premiums,” Mr Milliner said.
He says recent flooding in Wagga Wagga highlighted the power of levees, with estimated damage costs reduced by $100 million due to work completed there.
If mitigation takes place, Suncorp will reassess premiums and has already done so in areas such as Goondiwindi, where premiums for high-risk customers were reduced by $1000 after a levee was built.
“Our preliminary examination shows that, on average, appropriate mitigation lowers premiums by about 50% in towns at risk of flood,” Mr Milliner said.
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