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.
Reinsurance premiums are calculated as a percentage of the reinsured company’s gross written premium in accordance with the following table:
|Class of insurance||Tier||Initial rate Updated rate (from 1 April 2016*)|
|Commercial Property||A||12 16|
|Business Interruption||A||12 16|
|Public Liability||Nil Nil|
* Please note that the new rate applies to policies started or renewed on or after 1 April 2016.