Banks haven’t been able to make serious headway in Australian insurance because they’re reluctant underwriters, according to Suncorp CEO John Mulcahy.

The former Commonwealth Bank executive – he joined Suncorp in January – told an Australian Institute of Company Directors/Securities Institute seminar in Brisbane that bankers have been cautious of tapping into the insurance sector because they lack the skills, systems and information to “make a fist of it”. Not that it’s a one-way street: most general insurers have steered clear of banking for much the same reasons.

Mr Mulcahy said Suncorp is unusual because it has the “skills, relationships, brands and the capacity” to operate in both areas of business. But it won’t stick strictly to the allfinanz model. He said the company will focus on cross-selling in the future, but it “won’t be trying to be all things for the customer”.