Suncorp CEO Patrick Snowball is “not convinced” the Federal Government’s plans to bring down home and contents premiums in north Queensland will work and he has called for mitigation measures instead.

Finance Minister Mathias Cormann has announced proposals for a Government-run price comparison website and for brokers to use unauthorised foreign insurers if they offer cheaper premiums.

But in a speech to the American Chamber of Commerce in Australia, Mr Snowball warned aggregators are “too sharply focused on price” and questions whether foreign insurers will be subject to the same rules and regulations as domestic insurers.

He says he is “not convinced that these initiatives will drive the right outcomes” and would prefer to see greater focus on long-term solutions.

“Recently, we’ve seen towns such as Roma in Queensland implement flood levees and we have been able to respond with premium reductions of up to 90%,” he said “When governments implement mitigation, we are true to our word, responding with premium reductions to reflect the lowered risk.”

Mr Snowball says Australia’s economy is about to face some of the challenges other parts of the world have already confronted.

“The China tailwinds are moderating, the fiscal position needs to be adjusted, businesses need to transform and globalisation is unavoidable. Collectively, we need to acknowledge that we are now entering a period of lower economic growth and front up to the challenges of a mature First World economy.”

But Mr Snowball, who was recruited by Suncorp from the UK five years ago, says there is no need for Australians to be pessimistic.

“I am somewhat puzzled that despite this being a wealthy country with strong prospects, Australians continue to be rather glum about our economic future,” he said.

“On a global scale, Australia’s challenges are minor and with goodwill on all sides will be easily addressed.”