Insurers can voluntarily enter into a Reinsurance Agreement with ARPC from 1 July 2022 and are required to have done so by the end of the relevant transition periods. 

Large insurers will have until 31 December 2023 to have all cyclone-risk policies in the pool.  

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.  

The ARPC Cyclone Reinsurance Agreement for Eligible Cyclone Loss has now been adjusted to allow Lloyds Underwriters to enter into the Agreement with ARPC via their managing agent. This also provides Lloyd’s underwriters and unauthorised foreign insurers with the same options as general insurers under s8 (1)(a).  

Further updates have been made to the Agreement which changes 31 October to be 30 September in the ‘Quarter’ definition. This change can be found on page 28. 

The updated Reinsurance Agreement is available for viewing here.