Suncorp Uses AI for Insurance Affordability

• Duck Creek Policy Administration System: Live implementation for AA Insurance (Suncorp's NZ brand) for new home and motor policies, delivering simplified underwriting and greater automation[1] • AI Applications: Hyper-personalized product design, claims process transformation, and automated underwriting to reduce manual processing[1] • Core Platform Codename: 'Digital Insurer' - multi-year transformation program with progressive implementation across business units[1] • Integration Partners: Suncorp working with technology partners experienced in AI deployment alongside automation and process redesign[1] • Automation Focus: System designed to improve loss and expense ratios while maintaining underwriting quality[1]

The insurance affordability crisis represents a structural market challenge requiring industry-wide intervention. Suncorp's AI and platform modernization strategy signals that technology-driven personalization and automation are becoming competitive necessities rather than differentiators. The 2-4% population segment unable to afford insurance in Australia/New Zealand may require regulatory intervention or industry-government partnerships beyond technological solutions alone. In high-risk geographic zones (particularly New Zealand), further premium increases are expected as climate and seismic risk modeling improves, potentially creating coverage gaps that technology alone cannot solve. The duopoly structure in New Zealand home insurance (IAG and Suncorp) limits competitive pressure to reduce affordability barriers, suggesting regulatory scrutiny may intensify. Both major players facing FY2026 net income declines indicates margin compression across the sector, making efficiency gains through AI and automation critical for profitability maintenance.