Australian Reinsurance Pool Corporation Chief Executive, Dr Christopher Wallace, has welcomed the Performance Audit Report: Management of the Terrorism Reinsurance Scheme, by the Australian National Audit Office (ANAO), tabled in Parliament last month. The ANAO is the national auditor for the Australian Government.
The ANAO performance audit on ARPC concluded that ARPC is effective in managing the terrorism reinsurance scheme and that governance arrangements allow effective oversight and management of the scheme.
“This finding reflects ARPC’s vision to be an effective provider of terrorism risk insurance that facilitates private participation, supports national resilience and reduces losses arising from catastrophic events caused by terrorism,” said Dr Wallace. “It also reflects ARPC’s commitment to constantly strive to improve outcomes and meet the objectives of the scheme.”
The ANAO performance audit report made one recommendation: that the Treasury reviews the options available to rebuild ARPC’s capital following an event leading to significant claims on the scheme, in order to minimise the need for premium increases. This recommendation was agreed by the Treasury.
- ARPC is effective in managing the Terrorism Reinsurance Scheme.
- ARPC has effective processes for reviewing and collecting premiums, as well as assessing whether the scheme’s participation requirements are being met.
- ARPC’s governance arrangements enable effective oversight and management of the scheme.
The full performance audit report on ARPC can be read here