Insurers can still make more money at the peak of the cycle, but not by increasing premiums or cutting corners, according to Suncorp CEO John Mulcahy.

He told the Insurance Council of Australia’s Outlook conference last week that future profitability growth is likely to come from increased consumer participation in the market, lower claims, lower operating expenses and an improved customer experience.

Speaking on how to generate growth in a mature market, Mr Mulcahy said the industry is now better placed to fight off the demons of the past when it comes to the peaks and troughs of the insurance cycle.  “After a decade of underwriting losses we’ve now got a stable platform to go forward on.”

Further growth may come from “saturating” the non-insured and underinsured market, or it may be sparked by economic growth, which will lead to more houses and more cars requiring insurance.

Productivity is another area companies may focus on. “I don’t think there’s any company that doesn’t look at productivity gains – we certainly do it with Suncorp. We’ve recognised that some processes are clunky, and we’ve put measures in place to overcome them.”