Our vision is to support insurers to deliver affordable terrorism and cyclone insurance in Australia

Terrorism

Since 2003, ARPC has operated a Terrorism Reinsurance Pool (terrorism pool) which provides general insurance companies (ARPC’s insurer customers) with reinsurance for commercial property and associated business interruption losses arising from terrorism.

While the Terrorism and Cyclone Insurance Act 2003 (TCI Act) mandates that insurers provide cover for terrorism, it is voluntary for insurers to purchase terrorism reinsurance from ARPC.

Insurers who enter into a Terrorism Reinsurance Agreement with ARPC, lay off their terrorism liability to ARPC for their eligible insurance contracts which are protected through ARPC’s net assets, global retrocession program, and the Commonwealth guarantee.

The terrorism pool has approximately $13.5 billion in funding (excluding insurance industry retentions) available for claims arising from a Declared Terrorism Incident (DTI) and protects more than 760,000 eligible insured property assets valued at more than $3.9 trillion.

Cyclone

From July 2022, ARPC commenced operating a Cyclone Reinsurance Pool (cyclone pool) for cyclones and cyclone-related flood damage. Participation is mandatory for general insurers with eligible policies. Large general insurers have now transferred their portfolio to ARPC. Small general insurers i.e., insurers whose total gross written premiums for household insurance are less than $300 million for the financial year before 31 December 2022, will be required to transfer their portfolio to ARPC by 31 December 2024. All insurers can voluntarily join the cyclone pool from 1 July 2022.