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.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
New Zealand’s latest insurance dispute figures are a timely warning for anyone relying on personal cover to protect their household income. The Insurance & Financial Services Ombudsman Scheme reported that, for the year ended 30 June 2026, health insurance became the largest category of disputes it investigated for the first time, with health disputes up 91 percent and 833 dispute investigations completed across all categories. - read more
Fresh commercial insurance market data is giving Australian businesses a more favourable pricing backdrop, but truck owners should be cautious about assuming broad rate falls will automatically reduce heavy vehicle premiums. Marsh’s Q3 2026 Global Insurance Market Index, released on 21 October 2026, reported a 12 per cent fall in Pacific commercial insurance rates for the quarter, led by property and supported by strong insurer competition and available capacity. - read more
Australia’s fast-growing data centre construction market is opening opportunities for electrical, HVAC, fire protection, cabling, fit-out and commissioning trades, but recent insurance industry discussion suggests the risk settings are not always keeping pace with the work. At a recent Australasian Professional Indemnity Group conference, specialists warned that data centre projects can involve unusual contractual, professional and technology-related exposures, especially where contractors rely on annual insurance programs designed for more conventional building work. - read more
Australia’s life insurance industry has moved mental health cover back to the centre of the affordability debate, after the Council of Australian Life Insurers released its response on 30 September 2026 to the independent review of the Life Insurance Code of Practice. For workers who rely on income protection insurance, the issue is practical: mental health conditions can affect earning capacity just as seriously as physical illness, but changes designed to keep premiums manageable may also alter what is covered. - read more
The 2026 National Truck Accident Research Centre major incident report gives Australian truck operators a useful, if challenging, snapshot of where serious heavy vehicle risk is changing. Released in October 2026 and based on de-identified NTI-insured heavy vehicle major-loss claims, the report points to progress on distraction and fatigue, while also highlighting renewed concern about inappropriate speed and following distance. - read more
Life insurance in Australia commonly pays a lump sum if the insured person dies or is diagnosed with a terminal illness, but policy terms, exclusions and related cover options can vary significantly. - read more
Life insurance is designed to provide financial support to your loved ones if you pass away. For Australian families, it can help cover debts, everyday living costs, funeral expenses and future needs such as children's education. This guide explains how life insurance works, what affects premiums, how to estimate cover, and what to check before choosing or maintaining a policy. - read more
Life insurance might not be at the forefront of your mind, especially when you're young and healthy. However, understanding the essence of life insurance early on can significantly impact your financial future and provide much-needed peace of mind. - read more
Single parenting brings with it a mosaic of responsibilities and challenges, not least of which is securing a stable financial future for your child. The rollercoaster of raising a child alone often means that planning for the future can take a back seat to the day-to-day demands of parenting. Unexpected illnesses and injuries can compound these challenges, causing stress to multiply and plans to go awry. - read more
Life insurance is one of those cornerstones of financial planning that often gets overlooked. Yet, the importance of life insurance in safeguarding your family's future cannot be overstated. It's a robust financial instrument that provides peace of mind, knowing that your loved ones will be financially secure in the event of your untimely passing. This introductory section lays the groundwork for understanding why life insurance is pivotal in your family's financial health. - read more
Knowledgebase
Underwriting: The process by which an insurer determines the risk of insuring a client and decides the terms of coverage.
No comments yet. Be the first to share your thoughts.