Suncorp’s insurance business has survived Cyclone Larry and it predicts an improved result over the next year.

Speaking at a meeting of the Committee for the Economic Development of Australia, CEO John Mulcahy said the group’s 10^th anniversary year was a mixed one but the company remains confident it can continue to increase the profitability of its insurance operations.

Cyclone Larry left $85 million of claims for Suncorp but this has been balanced by increasing market share in NSW through its GIO general insurance business.

Mr Mulcahy says events like Cyclone Larry have an immediate effect on the bottom line but they can also have longer-term marketing benefits. In this case, it helped show Queenslanders the benefits of insuring with a locally based company.

Although Suncorp’s extensive branch network is generally used for the banking side, it was a big advantage immediately after the disaster.

“Unlike our competitors, we didn’t have to bring in mobile operations, caravans or tents. We could take claims inquiries and provide emergency cash within days via a familiar branch presence,” Mr Mulcahy said.

He says the other lesson from Cyclone Larry is the importance of keeping a reasonable level of insurance across the community. Seven out of 10 Australians are under-insured, some by as much as 20%. The increasing number of weather-related events worldwide will only exacerbate this gap.

“Queensland is particularly vulnerable, with climatic conditions that expose us to fires, floods, storms and cyclones and with much of our population concentrated in coastal regions.”