Reinsuring with ARPC

Reinsuring with ARPC

Insurers may reinsure the risk of claims for eligible terrorism losses with ARPC. Premiums that insurance companies pay for reinsurance to the ARPC contribute to the pool of funds available to cover claims from declared terrorist incidents. ARPC has a standard reinsurance agreement which it enters into with issuers of eligible insurance contracts.

ARPC Terrorism Reinsurance Treaty Agreement – Information Guide and Endorsement

Since 1 July 2003, the Reinsurance Agreement for Terrorism Risks (the Agreement) has undergone only minor amendments even though standard market clauses and contract structures have evolved and improved.

Whilst the broad intention of the Agreement is unchanged, ARPC has undertaken to amend and modernise the Agreement to align it with current market practice and to address some ambiguities in the existing format.

The links below show the Endorsement and an Information Guide, which identifies and explains the new format of each Article:

The endorsement will be issued by ARPC to all reinsureds before 31 March 2017 thereby giving three months notice prior to the Endorsement coming into effect on 1 July 2017.

ARPC appreciates the feedback and recommendations that have been received thus far. Any further comments should be sent to enquiries@arpc.gov.au before 15 February 2017.