The Suncorp Group Ltd (ASX: SUN) share price is trading lower on Thursday morning.
At the time of writing, the insurance giant's shares are down 1% to $11.23.
Why is the Suncorp share price under pressure?
The Suncorp share price has come under pressure this morning after following the lead of rival Insurance Australia Group Ltd (ASX: IAG) by releasing an update on recent claims.
This follows the hail and wind event which occurred on 28 and 29 October, impacting South Australia, Victoria and Tasmania.
According to the release, as of 3 November, Suncorp had received approximately 12,000 home and motor claims. However, as the full extent of damage is still unfolding, the company expects claims to rise further.
So much so, Suncorp is forecasting the total cost from the event to be in the range of $225 million to $250 million.
Suncorp's Group CEO, Steve Johnston, said: "Our local assessors and tradespeople are on the ground and helping affected customers."
"One of the key elements of our Best in Class Claims strategy is a more flexible workforce, which has been successfully scaled up to support this event. Our focus on the digital customer experience is also yielding positive results with more than half of all home and motor claims from this event lodged online."
"The Group's supply chain is responding well and we are not currently experiencing issues due to border restrictions. We will continue to work closely with governments and the Insurance Council of Australia to ensure we can respond to customers as quickly as possible," he added.
What about other events?
Suncorp revealed that there was a total of six declared weather events in October.
And while it is too early to accurately estimate the ultimate costs of the more recent events, Suncorp estimates that its hazard costs currently stand at $597 million to $702 million financial year to date. This is up from $382 million and $492 million just last week.
As a result, the company is forecasting full year natural hazard costs is in the range of $1.105 billion to $1.130 billion. This will exceed its FY 2022 allowance of $980 million by between $125 million to $150 million.
