Suncorp Warns Insurance Premiums Outpacing Inflation

Australians are paying more for insurance, with premiums growing almost twice as fast as inflation. Suncorp Group's chief executive Steve Johnson said that insurance inflation is different from economy-wide inflation and is running at a higher clip.

The total of all the premiums Suncorp charged in the year to June 30 was $15.42 billion, up 2.7 per cent. However, the company had a disaster-ridden year, with over 120,000 claims arising from 32 weather events across Australia and New Zealand.

Suncorp forked out $10.1 billion in claims in the year, exceeding its natural hazard allowance by more than $254 million. The company's bottom-line net profit nosedived 44 per cent to $1.03 billion.