Suncorp says it will provide a reinsurance program update for this fiscal year this month, after announcing it had joined the Federal Government-backed northern Australia cyclone reinsurance pool. 

Large insurers have until the end of this year to join the pool, while small insurers have until the end of next year. 

Suncorp Insurance Product and Portfolio CEO Lisa Harrison said last week that all eligible renewal customers and any new policies for home, strata, landlord and small business property insurance across the group’s brands will now access the cyclone pool.   

“Our commitment is to ensure all savings from the cyclone reinsurance pool are passed onto our customers,” she said.    

The pool, backed by a $10 billion government guarantee, aims to deliver the most benefit where cyclone-related risks are highest, but a number of influences are driving property premiums across the country. 

“Individual premiums are impacted by a range of factors and risks separate to the savings from the cyclone reinsurance pool,” Ms Harrison said. 

“This includes record high global reinsurance costs, and inflation on building costs rising over recent years. This means the impact of the pool on premiums will depend on customers’ individual circumstances.”  

Suncorp says it continues to support the need for long-term investment to tackle the underlying risks driving insurance affordability and accessibility challenges.   

“While Suncorp is supporting the pool as a government initiative for communities vulnerable to cyclones, we will continue to advocate for long-term investment to lessen the physical, economic and social impact of all extreme weather,” Ms Harrison said.   

The insurer’s four-point action plan includes promoting investments in public and private resilience infrastructure, improvements to where and how homes are built, and tax reform.