Postcodes

Postcodes

The premium charged by ARPC is determined by Ministerial Direction and are set by postcode into three tiers according to population density.

Allocation of postcodes

Postcodes allocated to tier A are those covering the CBD areas of Australian cities with a population of over 1 million: Sydney, Melbourne, Brisbane, Perth and Adelaide. Postcodes allocated to tier B are those covering the urban areas of all state capital cities and cities with a population of over 100,000: Sydney, Melbourne, Brisbane, Perth, Adelaide, Gold Coast, Canberra, Newcastle, Central Coast of New South Wales, Wollongong, Hobart, Geelong, Sunshine Coast of Queensland, Townsville and Darwin. Postcodes allocated to Tier C are those geographic postcodes not allocated to either tier A or B. Any property not on the mainland of Australia or Tasmania, but within Australian coastal sea is tier C.

Premiums

Reinsurance premiums are calculated as a percentage of the reinsured company’s gross written premium in accordance with the following table:

Reinsurance premiums
Class of insurance Tier Initial rate                  Updated rate (from 1 April 2016*)
Commercial Property A 12                                               16
B  4                                               5.3
C  2                                               2.6
Business Interruption A 12                                                16
B  4                                               5.3
C  2                                               2.6
Public Liability   Nil                                             Nil

* Please note that the new rate applies to policies started or renewed on or after 1 April 2016.