Suncorp CEO Steve Johnston says greater clarity around the design of the northern Australia reinsurance pool is likely to emerge towards the end of the year.

A Treasury-led Taskforce is consulting with industry, community representatives and other stakeholders, to develop a final design for a pool for cyclone and related flood risks, backed by a $10 billion Government guarantee.

“I think towards the end of the year, you will start to see what the shape of it might look like, ahead of implementation,” he told insuranceNEWS.com.au.

Mr Johnston says the process is still at the stage of gaining input from the Insurance Council of Australia, individual insurers and an expert panel as the Government works towards having a pool developed in line with plans for its introduction from the middle of next year.

“I suspect they will be pulling out all stops to make sure they get it in place by the first of July and equally we will be pulling out all stops to make sure the scheme is constructed in a sensible way and doesn’t lead to any perverse or adverse outcomes,” he said.

Mr Johnston also says insurers are continuing to face claims management challenges where natural disasters cause widespread damage to roofing, as a result of shortages of materials and roofers.

The Halloween hailstorms in Queensland last year and Cyclone Seroja in WA have highlighted the supply issues facing the industry in general, and the criticism insurers face when repairs take longer-than-expected for reasons often outside their control.

“You want to get people back into their homes as quickly as you can, but the variable here is communication,” Mr Johnston said.

“I don’t think the industry has always done a great job in communicating with customers around managing their expectations. Most people are accepting of delays when they are communicated with openly, honestly and regularly, and that is what we try and do.”

Mr Johnston says despite the latest COVID-19 lockdowns, government support for individuals and business and increased vaccination rates will assist the wider economic environment looking ahead.

“While I think there will be significant disruptions for the residual part of the calendar year, I am reasonably positive about what will happen when we emerge from these lockdowns,” he said.

The potential for business interruption claims from COVID-19 for Suncorp is very different compared with the first lockdown in March last year, Mr Johnston says, with just a very small percentage of policies still to be updated to contemporary wordings.