On the afternoon of 4th August I had a meeting with 2 representatives of Suncorp, Joshua Cooney (Corporate Affairs Manager Personal Insurance) and Executive General Manager Lisa Harrison who is responsible for Customer, Product and Pricing. The meeting was held in Proserpine. I thank the 2 of them for coming to me instead of my having to travel to them, this is the first time this has happened. They gave the reason for the visit as wanting to explain what Suncorp was doing to help the situation (not market failure) in North Queensland. I had already read the reports but I’ll explain to you: 1. We don’t have market failure as there is someone quoting for all types of insurance in North Queensland 2. Suncorp has come up with a new product for strata insurance for buildings valued at less than $5M. This product is being sold direct to Body Corporate Committees. I asked about Body Corporate Management companies and they said “yes” Body Corporate Management companies could apply but they wouldn’t get any commission – good!!! Please note: this product is sold direct and not through a broker 3. They have come up with a “Build to last” project where IF pre 1982 houses undertaken their stipulated mitigation then Suncorp would be able to reduce those premiums by up to 20% - hummmm. About 100,000 properties would be affected 4. Suncorp believe the people of North Queensland should be “tackling the problem and not the symptom”, so mitigation is the only way to go and the Federal Government is not required to interfere in the market 5. Joshua stated Suncorp had been making losses from policies in North Queensland over a number of years – I don’t think they are now My comments: 1. It doesn’t matter if we are getting quotes, it doesn’t matter why our premiums are so high, it doesn’t matter whether they are justified, all that matters is whether they are fair and affordable – and in my opinion, they are not 2. If your insurance costs have risen by 400% then a 20% reduction is a pittance! Simple maths: $100 x 400% = $400. $400 – 20% = $320. You are still paying 320% more than you were. 3. I understand the “Build to last” project, but where are people supposed to get the money to do the mitigation? I can send the details to anyone who wants them, they include: roofing; doors and windows; community awareness – please contact whitsundayinsurance@gmail.com By the way, the document states “Roof upgrades range from $3,000 to $30,000” – hummmmm 4. What about buildings post 1982? 5. What about the rest of us? What about those people who Suncorp (and its companies) don’t offer insurance to? 6. What guarantee do we have that Suncorp and/or other insurance companies will take any notice of any mitigation reports done and/or actioned, since the present experience is that reports are being ignored – Magnetic Island 7. If insurance companies have been under pricing North Queensland properties for a number of years, I consider that negligence. If insurance companies have been making losses from policies in North Queensland over a number of years, I would consider that incompetence I think I’m right in saying the Suncorp Group include: AAMI; VERO; GIO; APIA; CIL Insurance; Resilium amongst others. Regarding strata insurance: Suncorp’s new product is for strata valued at $5M or less. AAMI have a strata product for small residential strata only; Vero have limitations with respect to the valuation of a building and the number of storeys; GIO hasn’t been quoting in North Queensland; APIA doesn’t offer strata insurance only for contents; CIL Insurance is for caravans; Resilium (according to Archers) has a limitation of $5M. So I think this means any strata valued at over $5M, more than 10 units and over 2 storeys high is not offered insurance by a Suncorp company. What about us? My Landlord’s insurance for a property in Ayr insured through APIA (Suncorp) went up July 2015 by ANOTHER 40% this year! Premiums have not stabilised. I asked: 1. Lisa if she was aware of how much Suncorp companies had raised their premiums since 2011. She didn’t know the figures but can get them for me – I have to provide her the postcodes/areas I wanted to emphasise the possible 20% reduction probably means nothing. 2. Why Suncorp had refused to provide the figures the Australian Government Actuary, Peter Martin, had asked for to expand his reports for the Taskforce. They replied Suncorp had constantly cooperated with the Federal Government over the last 4 years but they didn’t see what difference the last set of requested figures would make to the reports. I guess that is something they would have to ask the AGA. 3. Why Suncorp thought the Federal Government should not interfere in the insurance crisis experienced in North Queensland. They replied they believed we should tackle the risk by mitigation instead of looking at a Mutual or Reinsurance Pool. I pointed out I believe any recommendations should work with the existing insurance companies and not in opposition to them. They saw the Mutual option as competition. 4. Whether they didn’t want to lower their reinsurance costs through the use of a reinsurance pool. They replied they thought a reinsurance pool would not work and we could take the example of Florida. Since I know the Taskforce is investigating the model of Florida in detail I have to wait until I see the Interim Report and the suggested models. I have asked Suncorp to keep an open mind until any, and all, of us have seen the models suggested in the Interim Report.