Reinsurance to cover Cyclone Debbie cost for Australian Suncorp

Suncorp, one of Australia’s largest insurers, said that it is well protected against the financial impact of Cyclone Debbie through reinsurance protection.

Australia’s Bureau of Meteorology (BoM) has extensive warnings in place for Queensland for destructive winds, storm surge, and flooding as the cyclone is expected to bring widespread rainfall over the next hours.

Claims costs from the cyclone are expected to be fully covered by a combination of Suncorp’s main catastrophe programme and the additional Natural Hazard Aggregate Protection that was purchased for the 2017 financial year, the company said.

The main catastrophe programme provides cover from $250 million up to $6.9 billion. The Natural Hazard Aggregate Protection provides $300 million of cover once the retained portion of natural hazard events greater than $5 million exceeds a total of $460 million. At 27 March 2017, events greater than $5 million are estimated to be approximately $460 million.

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