Natural disasters in Australia cause increasing insurance premiums of car, home and business
Suncorp says that a string of natural disasters cause increasing in car, home and business insurance premiums over the past two years so the Australia insurance market only handles further increases in premiums. Over the past year, Suncorp has paid out nearly $4 billion in claims against natural disasters, such as Queensland’s floods and the Christchurch earthquake.
However, Patrick Snowball as Suncorp’s chief executive said that at least in 2015, the industry had to be mindful of the economic impact of future rate increases. He added that if the company’s own reinsurance came down, Suncorp would be in a position at same stage to lower insurance premiums. Nevertheless, he cautioned that if there was another major earthquake in New Zealand, Suncorp had to stop writing some classes of insurance in New Zealand in particular.
It caused of Insurance cover for some properties in New Zealand was already becoming “unaffordable”. Suncorp told that its annual profit fell 42 per cent to $483 million because to give the fund in major natural disasters including floods and New Zealand’s earthquake. In late 2009, Mr. Snowball as a former senior executive with UK insurer Aviva had joined in Suncorp . John Story as Suncorp’s chairman said that the council was happy for securing a global executive of Mr Snowball’s caliber for an extended period.
