Floods hit Suncorp
Suncorp, which has the largest insurance market share in Queensland, is likely to be worst hit following the state’s flood disaster, with claims estimated to cost the insurer at least $200 million.
This was the prognosis given by Aviva Investors’ investment manager Andrew Hamilton, who said once claims exceeded the $200 million mark Suncorp would trigger its aggregate reinsurance program and its reinsurers would cover the remaining cost.
Hamilton said that Suncorp was hardest hit because it was the only insurer in Queensland providing flood cover under its Suncorp-branded policies.
“The impact on Insurance Australia Group and QBE is relatively minor as neither of these companies insure against flood damage in Queensland,” he said.
“However, this lack of cover looks set to become a major ongoing political issue that has the potential to affect the industry’s approach to flood cover in the future,” Hamilton said.
Aviva Investors identified the insurance industry as one of the three sectors worst hit following the state’s excessive floods.
The company said transport and retail sectors would also suffer, which had important investment implications.
According to Hamilton, the chance of more heavy rainfall and further flooding in Queensland could have an additional impact on the insurance industry.
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
