Suncorp Directed to Reassess 60% Home Insurance Premium Increase

Consumer complaints about general insurers to AFCA have increased more than 80% since 2018, with a significant spike following the 2022 floods. In the last financial year, there were over 29,000 complaints about general insurers, with less than 4% concerning premium increases. Suncorp's AAI Limited had almost 2,800 complaints between 1 July 2023 and 31 December 2023, resulting in $25.5 million in compensation.

In this particular case, the Suncorp customer challenged the 60% premium increase, arguing that the risk factors for their property had not changed. AFCA's intervention highlights the importance of insurers providing clear and justified reasons for premium adjustments, especially when such increases are substantial.

For tradespeople and small business owners, this case underscores the necessity of staying vigilant about insurance premium changes and seeking clarification or challenging unjustified increases. It also demonstrates the role of regulatory bodies like AFCA in ensuring fair treatment of consumers within the insurance industry.