Cyclone pool continues to support insurance outcomes in higher-risk areas
20 October 2026
Australian Reinsurance Pool Corporation (ARPC) has released its latest Cyclone Reinsurance Pool Premium Assessment, finding that improvements in insurance affordability and availability in higher cyclone risk areas have been sustained.
The assessment shows quoted average Home insurance premiums for medium to high cyclone risk policies remain between 14% and 37% lower than before insurers joined the cyclone pool. Quote success rates in medium and high cyclone risk areas have also improved by 25% to 28% since insurers joined the pool.
Since ARPC’s previous assessment using January 2026 data, average Home premiums and quote success rates have generally remained stable in higher-risk regions. In contrast, premiums have continued to rise in lower-risk areas, consistent with broader movements in the Home insurance market.
ARPC Chief Executive Dr Christopher Wallace said the results showed the cyclone pool was continuing to provide targeted support to communities most exposed to cyclone risk.
“Insurance affordability remains a significant challenge, particularly for households and businesses exposed to natural hazards,” Dr Wallace said.
“These results show that the improvements we have seen in higher cyclone risk areas are being sustained, despite ongoing premium pressures across the broader insurance market.
“The cyclone pool is designed to concentrate its support in areas of medium and high cyclone risk, while allowing premiums in lower-risk areas to remain broadly comparable with the private reinsurance market.”
Since October 2022, average Home premiums in the highest-risk wind bands have fallen by 37%. Over the same period, premiums in the lowest-risk wind bands have increased by 42%, likely reflecting broader Home insurance market movements rather than the introduction of the cyclone pool. Between January and July 2026 alone, premiums in the lowest-risk wind bands increased by 8%.
Insurance availability has also improved in medium and high-risk areas compared with before insurers joined the cyclone pool. Quote success rates increased substantially during 2023 as large insurers joined the cyclone pool and have been broadly stable since January 2026.
The assessment also examines insurance premiums for small and medium-sized enterprises (SMEs). Average SME Contents premiums remain lower in the highest-risk areas than before insurers entered the pool, including a 34% reduction in the highest-risk wind band. Premiums have increased modestly across most SME Contents wind bands since January 2026, while remaining unchanged in the highest-risk band.
Results for SME Business Interruption cover were more mixed, with average premiums higher than pre-pool levels on average. Business Interruption represents less than one per cent of in-force cyclone pool premium, and ARPC will continue to monitor these outcomes and consider them as part of its ongoing assessment of cyclone pool premium rates.
Dr Wallace said the assessment provided an important evidence base for ARPC’s ongoing management of the cyclone pool.
“The pool is one part of the broader response to insurance affordability and availability challenges in cyclone-exposed communities,” he said.
“We will continue to monitor outcomes for households and small businesses and use this analysis to inform future reviews of cyclone pool premium rates.”
The Premium Assessment analyses online new-business quote data from major insurers, tracking changes in average policyholder premiums and quote success rates across cyclone risk areas.
For media inquiries, please contact Alexander Drake, Head of Public Affairs and Communications on (02) 8223-6777 or [email protected].