IAG-owned Strata Unit Underwriters (SUU) is still taking on new business in north Queensland, the parent company said today, rejecting claims from an intermediary partner that it no longer offers quotes for first-time clients.

The insurer maintains there has been no change in its approach when it comes to the region, which has some of the highest premiums in the country and limited insurer options because of its exposure to cyclones and other severe weather elements.

“We continue to offer capacity and are dedicated to supporting customers in north Queensland,” an IAG spokesman told insuranceNEWS.com.au today. “To ensure we remain sustainable in the residential strata market, our acceptance of new customers is based on our latest assessment of the level of risks they face.

“We use the latest information available, including our claims data and experience, analysis of natural peril exposure [and] independent scientific reports, to understand how a customer may be impacted.

“As new information becomes available for a particular area, we may adjust our risk acceptance criteria for both new and existing customers, if required.”

A broker partner, who spoke to insuranceNEWS.com.au on condition of anonymity, says he was informed last week by SUU that it is no longer supporting new business in northern Australia, including north Queensland.

The broker, who services strata clients in north Queensland, says he was told SUU has “reached capacity on the amount of business they can insure in northern Australia”.

He says SUU, which provides policies underwritten by CGU, had said it will continue to offer renewals and honour any quotes that have been provided.

SUU has until recently been the only viable option for buildings with a sum insured in excess of $5 million, the broker said.