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Insurers need to step up to subprime plate: Mulcahy

Australian insurers and banks need to take a leading role in addressing the lessons of the subprime debacle, says Suncorp CEO John Mulcahy.

He told a lunch in Brisbane on Thursday that the financial services industry could not sit back and expect the Government to solve all its problems.

“Australia’s subprime response should not be left to the Government and regulators,” Mr Mulcahy said.

He says the industry needs to address five key issues: risk and capital management, transparency and disclosure, community education, bank and insurer positioning, and co-operation between the public and private sectors.