ARPC was established by the Terrorism and Cyclone Insurance Act 2003 (TCI Act) and its legislative function is to provide insurance cover for eligible terrorism and cyclone losses.

As defined by the TCI Act, ARPC has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions, including:

• the power to charge premiums in respect of contracts of insurance for which it is the insurer and
• the power to charge fees for services that it provides in connection with the performance of its functions.