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Update to ARPC’s Terrorism Pool insurer portal

Terrorism Reinsurance Pool cedants are moving to a new portal, PACE (Protecting Australians for Catastrophic Events). The RISe platform is expected to close in March 2025.

ARPC is working with cedants on this transition.

More information

The Terrorism Pool

The Terrorism Reinsurance Pool (terrorism pool) was established after discussions with key industry stakeholders, including insurers and reinsurers, banks, representatives of property owners, industry associations, insurance brokers, and actuaries.

Skyline

Through the terrorism pool, insurers can reinsure the risk of claims for eligible terrorism losses by entering into a Terrorism Reinsurance Agreement (Reinsurance Agreement) with ARPC. Eligible contracts of insurance are defined in the Terrorism and Cyclone Insurance Act 2003 (TCI Act). The policyholders of eligible insurance contracts will be covered for eligible terrorism losses in the event of a declared terrorist incident (DTI), with insurer customers required to meet these claims in accordance with the other terms and conditions of individual policies.

Claims against the terrorism pool are met once an individual insurance company’s retention is exhausted. ARPC’s pool of retained earnings will meet claims until the agreed retrocession deductible is reached. At this point claims are funded by the retrocession program. Once retrocession is exhausted, claims will be met by the Commonwealth guarantee.

The total value of the pool is approximately $14 billion.

Reduction percentage

If the responsible Minister considers that the amount paid or payable under the Commonwealth guarantee will exceed $10 billion, the Minister must also announce a reduction percentage. This will have the effect of limiting the level of cover by reducing the amount payable by the insurer to the policyholder.

Terrorism-Reinsurance Pool Structure 2022

Reinsuring Terrorism with ARPC

Insurers may reinsure the risk of claims for eligible terrorism losses with ARPC by entering into a Reinsurance Agreement with ARPC and paying the appropriate premium each quarter. Premiums that insurance companies pay for reinsurance to ARPC contribute to the Terrorism Pool of funds available to cover claims from declared terrorist incidents.

Useful information

Threat level

The National Terrorism Threat Advisory System is a scale of five levels to provide advice about the likelihood of an act of terrorism occurring in Australia. The National Terrorism Threat Level is regularly reviewed in line with the security environment and intelligence.

For more information on the system, the current threat level and advice for the public visit www.nationalsecurity.gov.au

The current level is:

Click on threat level for more information.

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Insurer customer logins to ARPC

Terrorism Insurer Portal (PACE)

PACE is ARPC’s new 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.