Vic fires, Qld floods trigger Suncorp reinsurance policy

insurance australian securities exchange chief executive

12 February 2009
| By Lucinda Beaman |
image
image
expand image

Suncorp will need to look to its panel of four reinsurers to underwrite the cost of the fires currently ravaging Victoria and the floods devastating north Queensland.

In a statement to the Australian Securities Exchange (ASX) this morning, the Queensland-based insurer said its reinsurance arrangements will be triggered as a result of the Victorian fires and north Queensland floods.

By 5pm last night, the group had received 1,250 insurance claims arising from the Victorian fires, coming from predominantly AAMI, GIO and Apia policyholders.

The group had also received 1,000 claims as a result of the storms and flooding currently affecting north Queensland, with the majority of claims coming from Suncorp policyholders.

Suncorp told the ASX that it was too early to provide an indication of claim numbers arising from the two natural disasters, but that it was “already clear these events would trigger the group’s aggregate reinsurance arrangements”.

The maximum combined cost of the Victorian fires and north Queensland floods to the group, including reinstatement premiums and the purchase of additional reinsurance cover, is expected to be around $180 million (net of reinsurance recoveries).

Outgoing Suncorp chief executive John Mulcahy said the group was providing its clients with access to emergency funds and accommodation, while also focusing on shortening the turnaround time for claims from these areas, among other initiatives, such as 24-hour call centres and temporary claims offices.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

1 day 8 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

2 weeks 6 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 1 day ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

6 hours 56 minutes ago

Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in Sept...

1 day 11 hours ago