Major CEO joins cautious chorus on QLD

Major CEO joins cautious chorus on QLD | Insurance Business

Major CEO joins cautious chorus on QLD
Suncorp CEO Patrick Snowball has added his voice to the chorus of concern surrounding the Federal Government’s plans for North Queensland.

Speaking to The Brisbane Courier Mail, Snowball highlighted the problems of the proposed North Queensland, ASIC-run aggregator, saying that comparison sites “tend to focus more on price than policy details and you could therefore end up – particularly in a cyclone area – with people having the wrong type of insurance.”

Snowball cited the problems faced by Brisbane consumers following the disastrous floods of 2011 where many home and business owners were not covered for the damage caused.

As an ASIC-run site, Snowball cautioned those involved. “They will have to be very careful because, of course, it will come with a level of government guarantee on it, I presume.”

Rejecting the idea that he was more concerned with profit margins rather than consumers and their insurance needs, Snowball noted that insurance in the region is already “keenly priced…  But it’s priced in relation to the risk.”

Snowball isn’t the only person within the industry with concerns over the Government’s fledgling plans. NIBA, ICA and brokers in Queensland have all voiced their concerns over the planned government aggregator which is set to come into effect in March 2015.
  • Really? 2014-10-28 2:12:29 AM
    Its the consumer not the comparator that focusses on price and saying these sites will compromise cover is not very complimentary to the consumer. If Mr Snowball is so concerned why does his company allow consumers to purchase his policies on-line with no consultation? and sometimes even at a discount for on-line purchases? The bog insurers are no longer the smartest in the room and they need to accept they have dragged their feet far too long on issues of transparency. Transparency builds trust and consumers want to trust their brands. Put your products onto these sites Patrick, allow consumers to choose between the cover they need rather than cover they may not. Consumers aren't stupid, technology has made them savvy Comparison sites are not aggregators, comparison sites provide a place for people to compare easily. I mean, we all know following the numerous disasters in QLD consumers never had an issue with coverage or policy interpretation when purchased direct from the insurer or an intermediary did they? What are the real concerns - more loss of market share? new players eating away further? Consumers want to trust their supplier which is where the broker can add value as the big insurers have eroded that over time
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