Reinsurance Pools

Premium Rates

ARPC has published revised premium rates for the Cyclone Reinsurance Pool (cyclone pool) which commenced operations on 1 July 2022.

The cyclone premium rates that insurers will pay to the pool were revised after a consultation period on the initial rates was extended with new rates released on 1 October 2022. 

As a result, $776 million in annual premiums will now be collected by the cyclone pool – a 10 per cent, or $91 million reduction in premiums, from $867 million. 

The $91 million reduction in premiums is comprised of the following:

Revised risk assessment for Western Australia:

– $45 m

Revised risk assessment for strata buildings:

– $17 m

Increase to non-insurance assumption in high wind risk regions:

– $29 m

Total:

– $91 m

The pricing formula designed by ARPC is designed:

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

Pricing responsibility stays with insurers

Responsibility for setting insurance premiums stays with insurers, and they are responsible for commercial decisions on how they set them.

Costs may be affected by other factors, including changing calculations of risk, changes to labour costs, and changes in building costs.

The Australian Competition and Consumer Commission will use its price monitoring powers to collect data to assess whether the savings from the reinsurance pool are being passed through to policyholders.

Please see links to important documents in the boxes below:

Insurer onboarding

For more information on Insurer Onboarding, see the Insurer Onboarding page.

Cyclone Pool Resources

Please see links for more information on insurer onboarding, the ARPC cyclone pool, and our legislation.

Login

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.