Suncorp to Slash Jobs and Offshore Work in Motor Claims

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Suncorp, a leading Australian insurer, has announced plans to reduce its workforce by cutting 30 of the 70 positions within its motor claims assessing coordinator team, with an intention to offshore some of these functions.

This decision has prompted a response from the Finance Sector Union (FSU), which is currently gathering feedback from its members and intends to challenge the proposed changes.

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

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Insuregroup's Remarkable Growth in Truck Insurance Policies

27 Dec 2025: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently announced a significant milestone: processing over 10,000 insurance policies since its inception, with a 25% increase in policy volume over the past year. This growth underscores the escalating demand for comprehensive truck insurance solutions tailored to the unique needs of Australian freight operators. - read more

Australian Life Insurers Report Significant Profit Increase in June 2025 Quarter

26 Dec 2025: Paige Estritori

The Australian life insurance sector has reported a substantial after-tax profit of $360 million for the June 2025 quarter, marking a significant increase from the $116 million recorded in the same period the previous year. This impressive growth is primarily attributed to a sharp rise in investment income and improved underwriting performance across key product lines. - read more

Rising Mental Health Claims Impact Australian Life Insurance Industry

26 Dec 2025: Paige Estritori

The Australian life insurance industry is witnessing a significant surge in mental health-related claims, reflecting broader societal challenges and increasing awareness of mental health issues. AIA Australia, a leading life insurer, has reported that mental health claims now account for 23% of its total claims, up from 15% in 2014. This trend underscores the growing prevalence of mental health conditions and their impact on individuals' ability to work and maintain financial stability. - read more

Decline in Australian Life and Income Protection Insurance Premiums

26 Dec 2025: Paige Estritori

Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more

Club Marine Marks 65 Years of Leadership in Australian Boating Insurance

26 Dec 2025: Paige Estritori

Club Marine, Australia's largest recreational boat insurer, is celebrating its 65th anniversary in 2024. Since its founding in 1959 as Marine Hull & Liability, the company has grown from a small operation in Victoria to a nationwide provider of insurance services for the country's boating community. - read more

Click for more Insurance News

Professional Indemnity Insurance Articles

How to Tailor Your Professional Indemnity Insurance for Better Liability Coverage

Professional indemnity insurance is designed to protect professionals from legal claims made against them due to mistakes or negligence in their work. It acts as a safeguard, covering legal costs and any damages awarded, ensuring that professionals can continue their practice without financial burden. - read more

Common Misconceptions About Professional Indemnity Insurance Debunked

Professional indemnity insurance is a type of coverage specifically designed to protect consultants and business professionals from legal claims and financial losses due to errors or omissions in their services. It provides peace of mind for those who offer expert advice or services to clients. - read more

Understanding Risk Management: A Guide for Australian Professionals

Risk management is a crucial concept that involves identifying, assessing, and prioritizing risks with the aim of minimizing their impact. For professionals, understanding and effectively managing risks can make the difference between stagnant growth and thriving success. But why is it particularly significant for those in Australia? - read more

Top 5 Reasons Australian Professionals Need Tailored Indemnity Insurance

In the fast-paced and dynamic landscape of today’s professional world, indemnity insurance has become a cornerstone of financial security for many Australian professionals. This type of insurance provides protection against claims of negligence or breach of duty made by clients or third parties. Without this safeguard, professionals may face substantial legal fees and damages that can significantly impact their financial stability. - read more

Why Professional Indemnity Insurance is Vital for Protecting Your Reputation as a Consultant

As a consultant, safeguarding your professional reputation is crucial. One effective way to do this is through Professional Indemnity Insurance. But what exactly is it? In simple terms, professional indemnity insurance is designed to protect professionals against claims made by clients for professional negligence or breach of duty. It acts as a safety net, covering legal costs and any damages awarded, if a client alleges that you've made a mistake or left them shortchanged by your services. - read more

Knowledgebase

Grace Period:
A time period after the premium is due during which an insurance policy remains in force even if the premium has not yet been paid.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.