So…were loyal Aussies really punished with higher premiums to fuel Suncorp’s $1.8 billion gain?
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Suncorp’s loyal customers thought they were being rewarded for sticking around.
Instead, they may have been paying more than newcomers for the same cover.
Now, one of Australia’s biggest law firms is preparing to take the insurance giant to court.
Slater and Gordon announced an investigation into whether Suncorp Group unfairly inflated premiums for long-term policyholders.
The probe centred on AAMI, GIO, Apia and Suncorp Insurance, with the firm suggesting loyal customers were silently penalised through higher costs.
The practice was labelled a ‘loyalty tax’ by Slater and Gordon, which argued that the increased charges were added without customers being properly informed.
‘The investigation focuses on allegations that these increased charges were included in premiums without proper disclosure, effectively punishing loyalty to these brands,’ the firm said.
According to Slater and Gordon, the case could impact up to 10 million insurance policies, with more than one million customers potentially affected.
The firm was considering whether this structure amounted to misleading conduct under Australian consumer law.
A spokesperson for Suncorp said the company had been caught off guard by the announcement.
‘Suncorp is surprised to hear of this investigation and would strenuously defend any future legal proceedings should this eventuate,’ they said.
The company defended its approach, noting major investments in pricing technology, data modelling and staff expertise.
‘We have made significant investments in our pricing and underwriting technology platforms, data models, and the expertise of our team to support the millions of customers who choose us to protect them when it matters most,’ the spokesperson said.
‘Our premiums take into account a comprehensive range of data sources, which are frequently updated and reviewed.’
Suncorp, which posted a $1.8 billion profit for the 2024–2025 financial year, has faced ongoing scrutiny over its premium-setting practices.
Slater and Gordon has encouraged customers with car or home insurance policies under AAMI, GIO, Apia or Suncorp to register their interest in the class action.
Insurance premiums have long been a sore point, and the Suncorp case is just one example of how loyalty can sometimes end up costing more.
But the issue goes beyond one provider—recent reports show that prices are climbing sharply across the entire insurance market.
If you’re wondering what’s driving these increases and whether there’s a way around them, this story offers some surprising insights.
Read more: Insurance prices are skyrocketing—the surprising solution
Will this legal battle finally change the way insurers treat loyal customers?
Instead, they may have been paying more than newcomers for the same cover.
Now, one of Australia’s biggest law firms is preparing to take the insurance giant to court.
Slater and Gordon announced an investigation into whether Suncorp Group unfairly inflated premiums for long-term policyholders.
The probe centred on AAMI, GIO, Apia and Suncorp Insurance, with the firm suggesting loyal customers were silently penalised through higher costs.
The practice was labelled a ‘loyalty tax’ by Slater and Gordon, which argued that the increased charges were added without customers being properly informed.
Slater and Gordon probe Suncorp’s ‘loyalty tax’. Image souce: Pexels/Kindel Media
‘The investigation focuses on allegations that these increased charges were included in premiums without proper disclosure, effectively punishing loyalty to these brands,’ the firm said.
According to Slater and Gordon, the case could impact up to 10 million insurance policies, with more than one million customers potentially affected.
The firm was considering whether this structure amounted to misleading conduct under Australian consumer law.
A spokesperson for Suncorp said the company had been caught off guard by the announcement.
‘Suncorp is surprised to hear of this investigation and would strenuously defend any future legal proceedings should this eventuate,’ they said.
The company defended its approach, noting major investments in pricing technology, data modelling and staff expertise.
‘We have made significant investments in our pricing and underwriting technology platforms, data models, and the expertise of our team to support the millions of customers who choose us to protect them when it matters most,’ the spokesperson said.
‘Our premiums take into account a comprehensive range of data sources, which are frequently updated and reviewed.’
Suncorp, which posted a $1.8 billion profit for the 2024–2025 financial year, has faced ongoing scrutiny over its premium-setting practices.
Slater and Gordon has encouraged customers with car or home insurance policies under AAMI, GIO, Apia or Suncorp to register their interest in the class action.
Insurance premiums have long been a sore point, and the Suncorp case is just one example of how loyalty can sometimes end up costing more.
But the issue goes beyond one provider—recent reports show that prices are climbing sharply across the entire insurance market.
If you’re wondering what’s driving these increases and whether there’s a way around them, this story offers some surprising insights.
Read more: Insurance prices are skyrocketing—the surprising solution
Will this legal battle finally change the way insurers treat loyal customers?
