Suncorp says costs from recent catastrophes will stay within provision

Suncorp says costs from recent catastrophes will stay within provision | Insurance Business

Suncorp says costs from recent catastrophes will stay within provision

After Australia was battered with a dangerous combination of bushfires, hailstorms, and heavy rainfall, Suncorp Group said that the costs from the weather events will likely be capped at $300 million and will remain within its provision for the year.

Nonetheless, the catastrophes have marked an “unprecedented start to the bushfire and storm season” in the country, according to Suncorp’s chief executive Steve Johnston. The insurer revealed that it has received more than 25,000 claims from hailstorms and over 1,400 claims thanks to heavy rains.

Natural catastrophe costs in the first half of the year were unchanged at $519 million, according to Suncorp, and it expects its reinsurance program to help full-year costs remain within the $820 million provision. Costs related to the bushfires alone came in at $145 million, with an additional $75 million to $105 million expected to hit the insurer in the second half of the year.

More broadly, two new reports share the belief that while the insurance industry is well placed to sustain itself following the crises, the unprecedented severity of the current bushfire crisis will bring some economic damage.