2020 CEO Survey: Steve Johnston, Suncorp

Disaster mitigation is one of the smartest investments governments can make, says Suncorp chief Steve Johnston.

What are the three enduring lessons or changes to flow from COVID-19?

Suncorp will emerge from 2020 as a more adaptable organisation with a greater sense of purpose. We entered the crisis in a solid position and then were quick to align our organisation behind clear priorities. Across our organisation, we were able execute on key projects quickly and well. My focus is on keeping this sense of purpose and momentum going.

COVID-19 has fast-tracked trends and customer behaviours we thought were at least three to five years away. Increasing numbers of customers across insurance and banking now prefer digital interactions for all their sales and service transactions, and this trend will continue. Investments in data and automation will be critical to staying ahead of these trends and remaining competitive.

The future of work will continue to evolve. Suncorp has been a leader in flexible working for many years, and through COVID-19 we demonstrated our people can work flexibly at scale without impacting productivity or our customer service. Face-to-face collaboration will always be vital, but we are reassessing how we use traditional workspaces and ensuring our people feel connected and productive wherever they are.

How would you rate the shape of the Australian economy as we head into the new year?

I am optimistic about 2021 and beyond. While the fight against this virus is far from over, Australia’s management of this crisis – at a government, business, and individual level – means that confidence and the economy is recovering faster than we expected.

What three reforms are needed to sustainably grow the economy?

I am supportive of the Treasurer’s focus on productivity-enhancing micro-economic reform as a means of growing the economy and addressing public debt. This approach could bring lasting dividends for future generations as past economic reform has.

Disaster mitigation is one of the smartest investments governments can make, yet Australia is still dangerously exposed to severe weather events. Investments in infrastructure projects that can protect our communities in the long term can also create near-term stimulus by creating jobs in regional economies.

Greater competition in the banking system could deliver economic benefits and better customer outcomes. More needs to be done to address the unfair systemic advantages enjoyed by the major banks around capital treatment.

What are the three best growth opportunities for your company in 2021?

For insurance, better use of data and automation will remain a core focus. In our claims business, which represents our biggest expenditure and therefore biggest opportunity, we aspire to deliver best-in-class claims, which is underpinned by technology, and will enable end-to-end digital claims experiences and more efficient processes.

In the bank, we are accelerating our digital everyday banking capabilities, while improving lending processes to deliver a faster, more consistent service for our customers and broker partners.

We will continue to advocate for government to reduce the risk of natural disasters on our communities and economy. I’ve seen first-hand the destruction natural disasters cause, so I am committed to playing our role as an insurer and working with the government on implementing the recommendations of the Royal Commission into National Natural Disaster Arrangements.

What impact will digital transformation have on your company?

We have accelerated our digital transformation to meet the needs of our customers. Following the recent Brisbane hailstorm, our insurance teams overcame the challenges of social restrictions and border closures with new virtual assessment technology. This allowed insurance assessors based in any state to connect with customers and builders via their smart phone or digital device to assess their homes’ hail damage. We were able to progress our customers’ claims quickly and safely and repair their homes. We will keep implementing technology to improve our customers’ experience and build greater efficiency through automation, which will enable our people to focus on our customers.

How would you rate business, state and federal government performance this year?

Overall, the response by all levels of government and the business community has been effective given the enormity of the challenge that COVID-19 presented.

While there may have been arguments with some decisions at certain points, in hindsight I believe we will assess our response favourably, particularly when compared to the rest of the world.