Suncorp to Slash Jobs and Offshore Work in Motor Claims

2

The FSU highlights key concerns among its members, including the brevity of the consultation period, the rationale behind the offshoring strategy, and the future job security of the affected employees at Suncorp. The union is preparing to engage with Suncorp's management to address these issues and seek clarity on the proposed measures.

Suncorp's spokesperson has explained that the restructuring aims to refine the efficiency of the motor claims team, particularly in organizing towing processes for customers. To mitigate job losses, Suncorp is offering redeployment opportunities within other segments of its motor claims operations and inviting affected employees to transition to the home claims team, especially to support customers impacted by Ex-Tropical Cyclone Alfred.

This restructuring move comes after Suncorp reported an 89% surge in net profit, reaching $1.1 billion, in its half-year results. This increase was driven by a one-time gain from the sale of its banking operations, beneficial natural hazard experiences, and positive investment results. However, the insurer also noted rising costs in motor claims due to increased portfolio exposures and cost inflation, despite achieving better recoveries.

A historical context shows that the FSU had previously prevented Suncorp from offshoring weekend duties of the motor claims team, which could have resulted in significant pay reductions for the affected staff.

This development is critical as it highlights ongoing changes in the Australian insurance sector, specifically how major players like Suncorp are adapting to financial pressures by reorganizing their operations. Such restructuring not only affects the livelihoods of employees but also sets a precedent in the industry for addressing cost challenges through offshoring and role reductions.

The next steps involve the union's active engagement with Suncorp's management, seeking to safeguard the interests of its members. Expert analysis suggests that while offshoring is a common cost-cutting measure, it requires a sensitive approach to balance employee welfare and organizational efficiency. Further developments in this case could influence employee relations and operational strategies within the insurance sector across Australia. Stakeholders await more details from Suncorp regarding potential additional measures to handle increased claims costs effectively.

Published:Friday, 11th Apr 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

Ombudsman Directs RACT Insurance to Honour Car Crash Claim Despite Undisclosed Damage

03 Oct 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has intervened to instruct RACT Insurance to process a claim for a policyholder who failed to disclose prior damage to his four-wheel drive. Initially, when securing the insurance over the phone, the owner described the vehicle as being in 'good shape' with only minor scratches. However, post-accident assessments by RACT revealed damage that seemed to have existed before the incident. - read more

Australian Homeowners Face 28% Increase in Insurance Premiums

03 Oct 2025: Paige Estritori

Recent data reveals a significant 28% increase in Australian home insurance premiums over the past year, marking the most substantial rise in two decades. This surge has placed considerable financial pressure on homeowners nationwide. - read more

QBE Insurance Faces Legal Action Over Alleged Misleading Discounts

03 Oct 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against QBE Insurance, alleging that the insurer misled over half a million customers about pricing discounts between July 2017 and September 2022. - read more

Property Council Raises Alarm Over Insurance Costs Impacting Housing Affordability in ACT

03 Oct 2025: Paige Estritori

The Property Council of Australia has expressed concerns that escalating insurance premiums, coupled with proposed regulatory changes, could further strain housing affordability in the Australian Capital Territory (ACT). - read more

Netstrata's Practices Prompt Industry-Wide Strata Management Reforms

02 Oct 2025: Paige Estritori

Recent investigations have brought to light concerning practices within Australia's strata management sector, particularly involving Netstrata, a prominent firm managing over 1,000 buildings and 35,000 apartments across New South Wales. Reports indicate that Netstrata has been charging apartment owners insurance brokerage fees significantly higher than industry standards, with some fees reaching up to six times the typical rate. This revelation has ignited a broader discussion on the need for transparency and reform within the industry. - read more

Click for more Insurance News