Insurer expects to take $250m hit from Brisbane storms

Insurer expects to take $250m hit from Brisbane storms | Insurance Business

Insurer expects to take $250m hit from Brisbane storms
Suncorp expects claims from the storms that devastated parts of Brisbane to reach $250 million, the insurer has announced.

Having received approximately 24,500 home, motor and commercial claims following the storms, Suncorp expects to reach the maximum financial impact of $250 million.

With a comprehensive reinsurance program and a 30% proportional quota share arrangement covering the Queensland home portfolio that limits the impact of natural disasters to $250 million, Suncorp stressed that it is early to predict the final tally but expects to reach the cap.

Suncorp’s allowance for natural disasters stands at $595 million for the 2015 financial year.

IAG had received approximately 11,000 claims for damage earlier this week with around 9,000 of those for motor vehicle claims.

CEO Mike Wilkins stressed that the insurer is doing everything they can to assist its clients in the region but warned that the cost of damage may not be known for some time.

“While call volumes are expected to diminish, it is still too early to reach an accurate estimate of the potential financial impact of this event. We will provide an update as soon as we are in a position to do so.”

Suncorp CEO Patrick Snowball said that Suncorp is assessing approximately 100 home claims across Brisbane and up to 1,200 vehicles at its mass assessment centre every day.

“Suncorp has one of the most experienced and largest networks of claims handling professionals in the industry.”

“While it will take some time to finish all repairs, Suncorp will rely on its broad network of repairers, builders and material suppliers to fix the damage as quickly as possible. Customers who have not submitted claims are urged to do so online or on the telephone.

“Last Thursday was a significant event and as such it will take some time to finish all repairs. However, the scale we have built and processes we use to respond to these weather events will help ensure the best customer experiences under the circumstances