OPINION: Another year of La Niña climate conditions has analysts worried the country’s general insurers – Suncorp and IAG – will face higher natural peril claims and increased reinsurance costs.
Suncorp Group picked an interesting time in the global weather cycle to sell its bank and become a “pure” stand alone general insurer.
Its net natural peril costs in the year to June 2022 were $1.11 billion – $354 million higher than the original allowance of $765 million made in 2021. IAG underestimated its catastrophe cover in 10 of the 13 years to 2021. But it also means it is providing insurance in locations that have an increasing probability of being exposed to floods.
Australia is fortunate there have been fewer cyclones recently, but the damage from this year’s La Niña storms have eclipsed the costs of any previous floods, according to the Insurance Council of Australia.
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