Suncorp storm cost forecast blows out beyond $1 billion
It has taken less than a fortnight for a South Australian hail storm to blow out Suncorp’s natural hazard costs to as much as $1.13 billion.
Hail damage in becoming more frequent in Australia's biggest cities and researchers say we're creating the perfect conditions.. (File Suncorp image)
The cost of the storm that hit South Australia, Victoria and Tasmania has been estimated at between $225 million and $250 million and the forecast for the full year to between $1.1 and $1.13 billion, which is above its allowance for storm impacts of $980 million.
Although the company has reinsurance it said the events to date have “eroded between $456 million and $561 million of its aggregate excess loss treaty of $650 million.”
Chief executive Steve Johnston has called again for governments to invest more in mitigation rather than disaster clean ups.
“Preparing our homes and communities to better withstand extreme weather is a smarter investment than rebuilding,” Johnston said.
The increase in its natural hazard impacts was made only two weeks after its last one, indicating that the looming La Nina weather pattern could be a significant issue for the company.
Suncorp said there had been six declared weather events in October.
The Bureau of Meteorology has the likelihood of a La Nina at 70 per cent. The weather pattern increases the likelihood of a wetter summer.
