RACQ insurance premium revenue rose 5.6% to $758.4 million last financial year, the Queensland group shows in its latest annual report.

Claims expenses increased 13% to $566 million, while RACQ’s overall surplus for the year ended June 30 was $26.7 million, up from $23.1 million in the previous corresponding period.

“In the aftermath of Cyclone Debbie, RACQ Insurance is handling $60 million in claims from members affected by the storm,” President and Chairman Nigel Alexander said.

“For the group to be able to help Queenslanders in this way and still return an after-tax surplus of more than $26 million is testament to the club's strength and resilience.”

CEO Ian Gillespie says RACQ Insurance is also working to transform its motor claims process to enhance customer ease and convenience.

“The outcome of that project, including trialling the delivery of complimentary rental cars to policyholders homes or workplaces for use while their vehicles are being repaired, will be realised this financial year,” he said.

RACQ called for legislative reforms on compulsory third party insurance to curb “claims-farming” by personal injury lawyers.

“Left unchecked, this practice will ultimately lead to higher costs for CTP insurers and insureds alike,” Mr Gillespie said.