Reinsurance Pools

Insurer onboarding

The Cyclone Reinsurance Pool (cyclone pool) commenced operations on 1 July 2022, and insurers can now enter into a Reinsurance Agreement with ARPC.

Large insurers will have until 31 December 2023 to reinsure all eligible cyclone risk with ARPC. This transition period is designed to provide insurers with sufficient time to manage costs and address any risks associated with transitioning away from existing reinsurance contracts and into the cyclone pool.

Please note Policyholders who have insurance for home, strata, and small business are not required to join the cyclone pool as this will be done on their behalf by their insurer.

Mandatory participation and transition

Participation is mandatory for general insurers with eligible policies. 

Large general insurers will be required to transfer their portfolio to the ARPC by 31 December 2023.  

Small general insurers (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, however, all insurers can voluntarily join the pool from 1 July 2022.

During the transition period, insurers can progressively transfer their eligible cyclone policies into the cyclone pool, or transfer all exposures through a portfolio transfer, or a combination of both.

Lloyd’s underwriters are not required to participate in the cyclone pool however, if they choose to participate in the cyclone pool, then they must reinsure on a ‘one-in-all-in’ basis.

Coverage of claims

For an initial period of three years from 1 July 2022, the cyclone pool will cover all of the cost of eligible cyclone and cyclone-related flood damage claims above the policyholder excess to support insurer transition and maximise the potential premium reductions through the cyclone pool.

Backing from a $10 billion Government guarantee

The cyclone pool is supported by an annually reinstated $10 billion Government guarantee. Any shortfall in reserves built up over time will be paid for through the Government guarantee.

If the $10 billion guarantee is likely to be exceeded by a single cyclone event or series of cyclone events within a single year, the Government will increase the guarantee to enable the cyclone pool to meet all its obligations.


The cyclone pool will be funded by charging reinsurance premiums to insurers that are consistent with the expected claims and operating expenses for the cyclone pool. Premium amounts for the cyclone pool will be determined and set by ARPC and reviewed by the ARPC reviewing actuary.

The pricing formula is designed to:

  • be cost-neutral to Government over the longer term:
    • does not seek to make a profit (thereby increasing savings available to policyholders and insurers).
  • lower the reinsurance cost for most policies with medium-to-high exposure to cyclone risk;
  • maintain incentives for risk reduction and offer discounts for properties that undertake mitigation:
    • encourage policyholders to engage in strategies to mitigate cyclone and related flooding risks
    • the discounts will assist in improving the affordability and sustainability of property insurance over time.

Reinsurance Agreement

The Reinsurance Agreement is available here.


Insurer customer logins to ARPC

Terrorism Insurer Portal (RISe)

RISe is ARPC’s Terrorism Reinsurance Pool (terrorism pool) insurer customer portal, which allows 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.