Suncorp wants the Federal Government to help fund a strategy it has developed to improve cyclone resilience in north Queensland.

Its “Protecting the North” package involves documenting and reporting mitigation work undertaken by homeowners, which Suncorp says could lead to premium reductions of up to 20%.

Personal Insurance EGM Customer Product and Pricing Lisa Harrison says government support for recording the work could bring lower premiums this year. Suncorp Bank is exploring financing options for customers wanting to improve their properties’ resilience.

Suncorp proposes a government-funded retrofit program to strengthen older homes against cyclones, and has designed a new product for low-income earners, with cover from $4 a week.

The package includes a direct strata product for smaller strata buildings, delivering premium savings of about 20% (see other story).

Suncorp says the program is conditional on government support.

Ms Harrison says the package delivers short, medium and long-term relief and is the smartest way to invest taxpayers’ money – by addressing the source of the problem.

“Mitigation is the most effective way to act,” she told insuranceNEWS.com.au.

The package has not been costed.

Ms Harrison says up to 100,000 older homes in north Queensland are not up to standard and would suffer significant damage in a major cyclone.

Research for Suncorp by James Cook University (JCU) shows resilience can be improved by measures such as roof strapping, bracing roller doors and securing window shutters.

JCU’s Cyclone Testing Station studied claims and policies from cyclones Larry in 2006 and Yasi in 2011. A final report will be released soon but Suncorp published early findings last week.

The JCU research finds older homes are more damaged by cyclones, but new homes contribute to smaller claims such as water damage, guttering, sheds, fences and shade sails.

Cyclone Testing Station director David Henderson says there were also significant claims in regions away from the main impact zones on the Cassowary Coast, south of Cairns.

“Roughly one in four policies in Townsville – further south – had a claim, mostly smaller claims, but this was at wind speeds at half the building code’s design wind speed,” he said.

Cyclone losses were most likely to result from roof damage allowing wind-driven rain into buildings.

Smaller claims, such as fencing and minor water damage, represented 86% of all Cyclone Yasi claims and 29% of the total cost. Dr Henderson says awareness campaigns may be the best way to reduce their frequency, by emphasising the need to remove shade sails and clear yards.

Houses built from 1925-81 have a higher risk of structural damage, but he says a significant proportion of contemporary housing did not perform as well as expected, “especially considering the wind speeds were less than the design levels for the region”.