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Home Reinsurance Pools The Terrorism Pool Reinsuring Terrorism with ARPC

Reinsuring terrorism with ARPC

ARPC has a standard Terrorism Reinsurance Agreement (Reinsurance Agreement). The Reinsurance Agreement requires insurer customers to identify all eligible contracts of insurance within their portfolio and pay ARPC terrorism reinsurance premium based on all contracts identified as being eligible under the Terrorism and Cyclone Insurance Act 2003 (TCI Act). The Reinsurance Agreement specifies the premium payable based on risk location.


Any company who write eligible insurance contracts may reinsure its terrorism risk with ARPC. An eligible insurance contract is one which provides insurance cover for loss or damage to eligible property and associated business interruption and public liability losses (please refer to Section 7 of the TCI Act). Eligible property is defined as the following property that is located in Australia: 

  • buildings (including fixtures) or other structures or works on, in or under land
  • tangible property that is located in, or on, such property
  • Eligible property as proscribed by the TCI Act.
  • Farms can also obtain cover if they hold insurance against business interruption.


The provisions of the TCI Act do not cover;

  • the building or contents of a mainly residential building, where the building sum insured value is less than $50 million or the floor space used wholly or mainly for residential purposes is more than 80%.
  • contracts of insurance which provide cover for, inter alia, workers’ compensation insurance, marine insurance, aviation insurance, motor vehicle insurance, life insurance, health insurance, private mortgage insurance, medical indemnity insurance and professional indemnity insurance.
  • property that is owned by Government or State.

Requirements to join 

In order to apply for Terrorism reinsurance with ARPC the following information is required:

  1. Full company name and Australian Business Number (ABN)
  2. Requested agreement inception date
  3. Company street address
  4. Company postal address
  5. Primary contact (general contact person, include phone number and email address)
  6. Secondary contact (general contact person, include phone number and email address)
  7. Australian fire and ISR gross written premium for the previous financial year.

Once this is received and approved, ARPC will complete the schedule and respond with a signed copy of the Terrorism Reinsurance Agreement for your review and countersignature.

Insurer customer obligations

The Terrorism Reinsurance Agreement requires insurer customers to submit the following information:

Quarterly premium returns. These are required so ARPC can determine the reinsurance premium owed. 

- Premium received during the relevant period

- Quarter 1 – 1 July to 30 September – due to ARPC 30 October

- Quarter 2 – 1 October to 31 December – due to ARPC 30 January

- Quarter 3 – 1 January to 31 March – due to ARPC 30 April

- Quarter 4 – 1 April to 30 June – due to ARPC 30 July.

Annual Aggregate – these are required so ARPC can determine the total risk exposure ceded and are due to ARPC by 31 August every year.

Snapshot of risk exposure at 3pm 30th June split into three reports:

  1. Street address details (only if there are insured risks with CBD postcodes).
  2. All risks excluding contract works (all postcodes).
  3. Construction risks (all postcodes) GWP Declaration – this is required in order to calculate the Insurer’s retention for the period (financial year). If no submission is received the default retention amount of $12.5million will apply. These are due to ARPC annually by 31 August for non-APRA regulated insurers and by 30 September for APRA regulated insurers. GWP for the prior financial year is to be reported, split into: 
    1. Eligible Premium:
      1. Fire and ISR
      2. Fire service levy (emergency service levy)
    2. Ineligible Premium. 
      1. Fire and ISR premium. 
      2. Fire Service Levy (emergency service levy)
  4. The RISe system provides insurer customers with a simple, secure, and effective means of submitting this information. To ensure the information held by ARPC is current, insurer customers are requested to use RISe to verify their details at least annually and advise ARPC’s Underwriting Department of any relevant changes.

View our key due dates for information in the Cedant Quick Reference Guide [PDF 241KB].


Insurer customer logins to ARPC

Terrorism Insurer Portal (RISe)

RISe is ARPC’s Terrorism Reinsurance Pool (terrorism pool) insurer customer portal, which allows terrorism pool insurer customers to lodge their company information in a secure and user-friendly environment.

Cyclone Insurer Portal (PACE)

PACE is ARPC’s Cyclone Reinsurance Pool (cyclone pool) insurer customer portal, which allows cyclone pool insurer customers to lodge their company information in a secure and user-friendly environment.