Suncorp plans to cut 30 out of 70 assessing co-ordinator jobs in its motor claims team and to offshore some work functions, according to the Finance Sector Union. 

The insurer has begun consultation with employees and the union is seeking member feedback, it says.

“Questions and concerns already raised by FSU members relate to the short consultation period, the business case for the proposal to offshore and their future employment at Suncorp,” the union added.

“The FSU will be raising these issues with management and seeking a response.”

Suncorp says it is looking at changes to its motor claims administration and co-ordination team aimed at improving the way it organises towing for customers.

“In addition to available redeployment opportunities in other parts of our motor claims team, any impacted employees will be offered the opportunity to move into our home claims team to support customers impacted by Ex-Tropical Cyclone Alfred,” a spokesperson told insuranceNEWS.com.au.

Suncorp said in its half-year results that motor claims costs increased amid growth in portfolio exposures and cost inflation across total loss and repair claims, partially offset by improved recoveries.

Net profit for the half rose 89% to $1.1 billion, supported by a one-off gain on the sale of its banking arm, favourable natural hazard experience and positive investment returns.

The union says that a couple of years ago it “succeeded in stopping Suncorp from offshoring the weekend work of the motor claims team”, which would have left some staff facing large pay losses.