Vic fires, Qld floods trigger Suncorp reinsurance policy

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.