Infrastructure projects to improve Australia’s resilience to natural disasters should form part of stimulus measures as governments look to help the economy recover from the COVID-19 pandemic, Suncorp says.

And the insurer moved to get its own house in order by pledging to phase out underwriting and investing in oil and gas, building on a previously announced commitment on thermal coal.

“We believe the time is right for a nation building program encompassing infrastructure, incentives, improved building standards and the removal of inefficient taxes and charges, all designed to create jobs and stimulate the economy,” Group CEO Steve Johnston said during today’s results presentation.

“This is about government at all levels coming together with business, big and small, to make a long overdue investment in our future.”

Mr Johnston says it is understandable that since March attention has shifted to the pandemic.

But he says “we should not kid ourselves” that the underlying problems that led to the Black Summer of disasters have gone away.

“Arguably, our nation is no better placed heading into this summer than we were this time last year,” he said.

Mr Johnston told insuranceNEWS.com.au that as well as infrastructure, there should be a focus on incentivising people to reduce their own risk and on removing insurance taxes.

“Historically insurance has been a dumping ground for inefficient taxes,” he said. “That is incredible to me.”

Mr Johnston says it is important for Suncorp to have “responsible investment and underwriting policies” so that it is able to speak out on such matters.

Climate campaigners welcomed the move to strengthen its Fossil Fuels Sensitive Sector Guideline.

Suncorp confirms it will “cease underwriting, financing or directly investing in new oil and gas projects, phase out underwriting and financing oil and gas by 2025, and directly investing by 2040”. It had already committed to pull out of existing thermal coal by 2025.

“While this new guideline has significant gaps, that is, it doesn’t address oil and gas pipelines nor gas-fired power stations, it is a great step forward for Suncorp which puts it ahead of many other insurance companies worldwide,” Market Forces campaigner Pablo Brait said.

“Suncorp has recognised that an expansion in oil and gas production will undermine the Paris Agreement on climate change and worsen the floods, bushfires, droughts and storms which are hitting its profits.”

Market Forces says QBE is “now the only major Australia-based insurer without a policy restricting oil and gas investing and underwriting”.