Suncorp says it has today joined the Federal Government’s cyclone reinsurance pool, which was introduced last year in response to soaring premiums in northern Australia.

Insurance Product and Portfolio CEO Lisa Harrison says all eligible renewal customers and any new policies for home, strata, landlord and small business property insurance across the group’s brands, including AAMI, Apia and Vero, will now access the pool.  

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

Large insurers have until the end of this year to join the scheme, which is run by the Australian Reinsurance Pool Corporation, while small insurers have until the end of next year. 

The pool, backed by a $10 billion Federal 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 will provide a reinsurance program update for fiscal 2024 early next month that will reflect its entry to the pool.

Underwriting agency CHU said last month its strata and build-to-rent portfolios would enter the pool from July, while Allianz and Sure Insurance have also announced that they have started accessing the pool.

The Australian Competition and Consumer Commission is monitoring the pricing of insurers that join the pool, and data is being collected to evaluate its impact and ensure savings are being passed through to policyholders. 

The Australian Consumers Insurance Lobby, which is continuing to seek further changes to the pool to expand its benefits, welcomed Suncorp’s announcement.

“With more insurers joining the pool, consumers now have the opportunity to compare insurance costs among various providers in pool,” Chairman Tyrone Shandiman said. “This increased competition is expected to bring benefits to consumers in terms of pricing and coverage options.”