Suncorp Group's (ASX:SUN) Vero brand has launched an insurance product to address challenges in the residential strata market, aiming to improve access, especially for complex and underserved risks, according to a Monday statement.

The product adopts a risk-based underwriting model, particularly for building defects, to reward proactive risk management, reduce placement friction, and enable fairer pricing across a range of strata properties, the company said.

The product is part of Vero's specialty lines portfolio and comes in direct response to broker feedback. It has initially launched in Far North Queensland and Darwin, with a phased national rollout planned over the coming months, Suncorp said.

The company's shares gained 2% in recent Monday trade.