QLD:Suncorp demands access to flood inquiry

AAP General News (Australia)
04-28-2011
QLD:Suncorp demands access to flood inquiry

By Tony Bartlett

GOLD COAST, April 28 AAP - Queensland's largest provider of flood insurance has warned
it may be unable to keep offering cover for flood-prone areas if it can't get comfort
about dam management, building standards and other issues.

Suncorp was refused leave to appear before the state's flood inquiry but has made a
written submission on flood preparedness for next summer's wet season, particularly dam
operations.

It has also submitted more information in support of its application to appear before
the hearings.

In its submission, Suncorp says it is in everyone's interest to have a healthy and
competitive insurance industry able to offer affordable cover for natural hazard risks.

"The key to success in providing comprehensive cover for natural hazards is the ability
to accurately assess and price risk," it said.

"The recent floods ... have called into question many of the underlying beliefs and
assumptions regarding flood risks in Queensland.

"As the major provider of flood insurance in Queensland, Suncorp believes that it should
have the opportunity to contribute to the inquiry on the issue of dam operations, future
management of water infrastructure, and other matters."

Suncorp says changes in dam operations and flood mitigation and planning policies could
affect its ability to accurately assess flood risk and obtain reinsurance cover.

It expects future negotiations with reinsurers to be more difficult and demanding,
with requirements for much more detailed information than in previous years.

"In particular, it is anticipated that previously held assumptions as to the effectiveness
of Wivenhoe Dam as a flood mitigation measure will no longer apply," the submission says.

Suncorp says it has to be sure there will be appropriate management of dams, flood
mitigation infrastructure and management, and building standards and requirements in flood-prone
areas.

"If it is not possible to get a sufficient level of comfort ... it may not be possible
to economically price insurance, or acquire reinsurance, of flood-prone areas of Queensland
for the next wet season and future years," it said.

The insurer is concerned the inquiry might produce findings that curb its flood insurance
business in Queensland.

"There exists the prospect of findings and recommendations adverse to Suncorp's interests,
including recommendations which, if implemented, will inhibit Suncorp's capacity to continue
to offer flood insurance in the Queensland market."

AAP bart/crh/jl/de

KEYWORD: FLOODS INQUIRY SUNCORP

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