The Balm After The Storm

Sydney Morning Herald

Monday May 14, 2007

Deborah Cassrels

One year on from the devastation of Cyclone Larry in Far North Queensland, insurer Suncorp has finalised most of the 8000 claims it received, half of all insurance claims stemming from the catastrophe.

The Queensland insurer has settled 90 per cent of claims, with some larger ones, involving home rebuilding, yet to be completed.

The category five cyclone struck on March 20 last year in the early hours of the morning, wreaking severe, widespread damage.

"Our immediate priority was to get the claims assessors and other support staff into the area," says Jamin Smith, Suncorp's public affairs adviser. "We approved smaller claims very quickly so that people could return to normality."

Suncorp donated $50,000 and raised more than $250,000 for the Queensland Government disaster appeal from Suncorp customers across Australia.

The company set up offices in Innisfail and implemented an emergency response plan. It flew a team of 60 people, including 38 assessors, structural engineers and support staff, to the region when the cyclone struck and began assessing claims the next day.

"We knew that any major weather event that hit that area was going to need our response very quickly," Smith says. The co-ordinated emergency response from the former chief of the Defence Force, General Peter Cosgrove, who led the Cyclone Larry Recovery Taskforce, federal, state and local governments and the community was enormous. "All these groups worked very well in the rebuilding effort."

Logistical difficulties, such as flooding and debris across roads, impeded efforts to reach the area and many central services such as phone lines and power were cut.

"One of the first things we did was put an aid package in place freezing payments on loans, providing cash to people who needed it immediately," Smith says.

Assistance ranged from temporary accommodation and short-term financial relief to mobilising builders and other trade professionals to help with rebuilding homes, as well as implementing agreements with building material suppliers.

Cyclone Larry has cost Suncorp $80 million after reinsurance recoveries. The actual cost would have risen above $100 million. Reinsurance for Queensland matters, such as Cyclone Larry, is recovered from programs Suncorp shares with RACQI.

"The feedback from our customers is that they have been very happy with the way we responded," Smith says. "They appreciate that we have had a presence in the region since day one. Though there's still work to do we have broken the back of it."

© 2007 Sydney Morning Herald

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