Australia’s terrorism insurance scheme, administered by Australian Reinsurance Pool Corporation, has renewed its retrocession* program for the 2022 calendar year.
The $3.475 billion retrocession program, plus ARPC’s net assets and the $10 billion Commonwealth guarantee, provides scheme capacity in the event of a declared terrorism incident against commercial and eligible property assets, of approximately $14 billion.
“ARPC’s retrocession program encourages a mix of global and Australian reinsurers to provide terrorism cover for Australian-based property assets, which transfers the risk and protects the Australian Commonwealth Guarantee and Australian taxpayers,” said Dr Christopher Wallace, ARPC CEO.
“This year, ARPC worked with our reinsurance advisor AON to simplify the program by converting it to a full multi-year arrangement and renewing at expiring terms,” Dr Wallace said.
“ARPC renewed its $3.475 billion retrocession with a $225 million excess, for the same price as 2021, which is an impressive result,” he said.
The $3.475 billion retrocession program and ARPC’s net assets are the first layers of funding for claims in the event of a terrorism incident.
Dr Wallace and Chief Underwriting Officer, Michael Pennell PSM, met with over 50 reinsurers online in key global markets to negotiate the 2022 program.
“ARPC remains an effective provider of terrorism risk insurance that facilitates market participation, supports national resilience and reduces potential losses arising from terrorism catastrophe,” said Dr Wallace.
*Retrocession is when a reinsurer purchases reinsurance.
For media inquiries, please contact ARPC CEO Dr Christopher Wallace on (02) 8223-6777 or [email protected]