Affordability challenge 'never greater': Suncorp CEO
More support is needed for vulnerable Australians facing rising risks and increasing insurance premiums as relentless extreme weather continues, Suncorp CEO Steve Johnston says.
Mr Johnston says when he visited flood-hit regions such as Lismore this time last year, he was confronted by “some of the most widespread devastation I had seen in my 17 years in the insurance industry”.
“Unfortunately, many communities are continuing the long physical and emotional recovery following the 2022 East Coast floods,” he said this week.
“Extreme weather events, be it floods, bushfires or storms, no longer seem to have an ‘off season’.
“In this context, the value of insurance has never been greater, nor has the challenge of affordability.
“This is compounded for those living in our most risk-prone or vulnerable communities.
“Simply put, after more than a century of allowing people to build in harm’s way, we need to better support those that are paying the emotional and financial price.”
Mr Johnston says pushing people out of the insurance market or exacerbating the problem of underinsurance is “not an option” as it simply transfers the cost of extreme weather events to the taxpayer.
“This is an intergenerational challenge that must be met now through proactive collaboration and investment across all sectors of our community.”
He says the dial has shifted on government resilience investment, with the Federal Government committing to spend $1 billion over five years, but communities are “still crying out for more action”.
“We need to continue to cut through the tiers of government and for National Cabinet to play a leadership role – driving a national conversation and long-term stable financing to protect communities now and from a changing climate.”
Mr Johnston says it will be crucial to focus on the right mitigation projects “by doing the numbers on the economic, social and environmental benefits”.
“Local councils must be central to this as they have invaluable insights, data and understand local context.
“When infrastructure is simply not enough to reduce the risk, we need to have more tough conversations about the long-term future of some vulnerable communities.”
Suncorp says in relation last year’s flood catastrophe it has finalised more than 14,000, or 80%, of flood claims in NSW and around 19,000, or 85% in Queensland.
“We’re now at a critical juncture,” Mr Johnston says.
“The next 12 months will be vital to ensure the momentum is sustained, commitments are turned into action, and the legacy of these floods are not forgotten.”
