Suncorp says broker partners are at the core of its strategy after the insurer announced the creation of a Commercial & Personal Injury function that will start next month. 

Group CEO Steve Johnston unveiled the changes yesterday during an earnings webcast. The changes also include the creation of a Consumer Insurance function. 

EGM Commercial Insurance Michael Miller will become CEO Commercial & Personal Injury and CEO Insurance Product Portfolio Lisa Harrison will lead Consumer Insurance as CEO. 

In his new role Mr Miller will have end-to-end accountability for commercial, workers’ compensation (underwritten and managed funds) and compulsory third party (CTP) customers across product, portfolio, pricing, underwriting, claims and distribution. 

“The creation of a dedicated Commercial & Personal Injury function is recognition of the strategic importance of these portfolios to Suncorp Group and the vital role broker partners play,” a spokesperson told insuranceNEWS.com.au. 

Vero Head of Distribution Anthony Pagano currently reports to Mr Miller. 

Under the changes announced yesterday Suncorp will be organised around three core insurance functions – Consumer, Commercial & Personal Injury and New Zealand – next month. Jimmy Higgins remains CEO of Suncorp New Zealand. 

Mr Johnston says Suncorp’s increased earnings in the last financial year reflected partly the strength of its broking channels. Group net profit after tax increased to $1.14 billion from $681 million a year earlier and cash earnings surged 86.3% to $1.25 billion.

“Significant growth across the Australian and New Zealand Insurance businesses…has been supported by improved marketing, the revitalisation of our brands and broker relationships and improved customer value propositions,” he told the webcast. 

Suncorp does not provide a breakdown for its intermediated business but an indication can be drawn from its Commercial, CTP and Workers’ Compensation portfolios. 

Commercial gross written premium (GWP) rose 9.4% to $1.81 billion, CTP 0.7% to $1.08 billion and workers’ compensation and other 4.9% to $662 million. 

Suncorp says commercial rate increases averaged 11% across the year, retention rates averaged 86% and there was a broad-based improvement in growth across portfolios in the second-half. 

Packages GWP fell 1.1% but growth improved in the second-half and was up 2.3%. Packages refers to SME business insurance packages sold via brokers.

“The focus for the portfolio has been on improving margins,” Suncorp says. 

Rate increases averaged 12% and, along with competition, this impacted retention rates which averaged 73%, down from 74%. 

“Further improvements in margin and growth will be underpinned by the delivery of the new iSME platform in FY24 including connectivity with major broker platforms.” 

As part of its FY21-23 plan Suncorp delivered the first phases of the new Intermediated Small and Medium Enterprises (iSME) Platform. The platform is built to enhance pricing and risk selection and improve the broker experience. 

Suncorp says the capability was delivered for new business on the Vero Edge Platform in the first half of FY23 in Australia.