Kelly O’Dwyer, Minister for Small Business and Assistant Treasurer, has provided a Ministerial Direction under the Terrorism Insurance Act 2003 to the Australian Reinsurance Pool Corporation outlining reinsurance premium increases and detailing how they will be calculated.
The reinsurance premium increases, which commence in April 2016, are a key recommendation of the 2015 Triennial Review of ARPC by Treasury and will apply to insurers who use the scheme to reinsure commercial property against acts of terrorism covered by the ARPC scheme.
“The reinsurance premium increases are necesssary to maintain the financial sustainability of the ARPC scheme and are the first since the scheme’s inception in 2003,” said Dr Chris Wallace, ARPC CEO.
“ARPC stands ready to support the economic resilience of Australia in the case of terrorism catastrophe.”
Read the Direction here
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