Flooding complaint
The group's insurance chief executive, Mark Milliner, responded after Ipswich mayor Paul Pisasale last week accused the industry of refusing to pay out millions of dollars to flood victims while posting growing profits.
Floods have wreaked havoc in Queensland, only two years after the 2011 deluge.
Mr Milliner, who is also president of the Insurance Council of Australia, said Suncorp had lost a lot of money in insurance claims from towns it had since stopped selling flood cover policies to, such as Roma and Emerald in Queensland.
"In Roma over the past three years from a business perspective we've probably collected about $4 million in premiums and spent about $150 million in claims," he told ABC TV's Inside Business. "I think from a broad public and private sector we've spent nearly half a billion dollars in fixing up infrastructure, schools as well as homes up there."
A levee could have been built in the town eight years ago for $2 million, he said, but would now cost $15 million.
A levee is planned for Roma, where the average insurance premium has jumped to $3000, compared with nearby Tylerville, which has a $1200 average but also a flood levee.
Frequently Asked Questions about this Article…
Suncorp said it stopped selling flood cover to certain flood‑prone towns last year after suffering heavy losses from claims. CEO Mark Milliner argued local government should have done more to protect these towns, and the decision followed repeated flood damage in the region.
The article specifically mentions Roma and Emerald in Queensland as examples of towns Suncorp had since stopped selling flood cover policies to.
Suncorp’s insurance chief said that over the past three years in Roma the company had collected about $4 million in premiums and paid roughly $150 million in claims.
Mark Milliner, who is also president of the Insurance Council of Australia, said local government should have done far more to protect flood‑prone towns and pointed to the high cost of repeated recovery as a reason for limited insurance availability.
According to the article, the average insurance premium in Roma has jumped to about $3,000, compared with around $1,200 in nearby Tylerville, which has a flood levee.
The article notes a levee could have been built in Roma eight years ago for about $2 million but would now cost about $15 million. It also says a levee is planned for Roma.
Mark Milliner said that, from a broad public and private sector perspective, nearly half a billion dollars has been spent fixing infrastructure, schools and homes in the affected areas.
Yes. Ipswich mayor Paul Pisasale accused the insurance industry of refusing to pay out millions to flood victims while posting growing profits. Suncorp’s Milliner responded to those accusations in the interview.
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