Patrick Snowball, CEO, Suncorp
'Financial Systems Inquiry and its impact on the Banking and Insurance sectors'
On Wednesday 26th of November Mr Patrick Snowball, Group CEO of Suncorp, addressed the potential outcomes of the Financial Systems Inquiry led by David Murray and its potential impact on the Banking and Insurance Sectors. The FSI is due to hand down its final report to the Federal government this weekend. He addressed the inquiry both from a banking and insurance perspective making a number of key points.
In particular relation to insurance, Mr Snowball argued against Federal plans to ease pressure on insurance premiums in North Queensland through a comparison web site and boosting use of unauthorised foreign insurers in the region. He based this on the lack of financial awareness of consumers of the consequences, through inadequate or incorrect insurance levels and coverage. This has been highlighted to Suncorp through the aftermath of a number of recent disasters including the Brisbane floods and Cyclone Yasi. Mr Snowball suggested that a much better alternative solution to lower premiums could be found through Suncorp’s recent work with Queensland Universities to research better building construction especially in cyclone-prone areas, both for new build and retro fitting options.
Mr Snowball also put forward the case for higher capital requirements for the big four, particularly where similar risk profile loan books were concerned. He argued that regional and smaller players were not able to compete with the big four on the basis that the capital requirements for those smaller players made it much more difficult, and did not allow them to compete on a level playing field.
The Australian British Chamber would like to thank KPMG in particular Mr Rob Jones for kindly hosting the event in their Brisbane office yesterday the 26th November 2014. We would also like to thank Virgin Australia in particular Ms Kylie Dickinson for their sponsorship.