ARPC acknowledges ACCC final insurance monitoring report

30 June 2026 

Australian Reinsurance Pool Corporation (ARPC) acknowledges the release of the Australian Competition and Consumer Commission’s (ACCC) fifth and final insurance monitoring report, marking the conclusion of its formal monitoring role following the introduction of the Cyclone Reinsurance Pool in 2022.

The report provides an independent assessment of how the cyclone pool has operated over time, drawing on five years of data on prices, costs and market outcomes.

It finds the pool has played a clear role in moderating premium increases for households and small businesses exposed to higher cyclone risk, with reductions in average premiums for many customers in these areas. These outcomes have been sustained over time, particularly in higher-risk regions.

The ACCC also highlights that insurance affordability remains a significant challenge, with premiums continuing to reflect broader cost pressures, including claims costs, extreme weather and inflation.

The report further notes that:

• insurers are passing through reductions in reinsurance costs associated with the pool to policyholders
• the benefits of the pool are targeted, primarily assisting households and businesses in medium to high cyclone risk areas (around 2% of policies nationally)
• there have been some improvements in availability, although insurer participation and competition in northern Australia remain constrained
• private mitigation is being recognised by insurers, but incentives remain relatively weak and uptake is limited

ARPC Chief Executive Officer Dr Christopher Wallace said the ACCC has played an important role in ensuring transparency and accountability throughout the implementation of the pool.

“The ACCC has delivered a comprehensive and independent body of work over the past five years, bringing clarity to a complex and evolving market,” Dr Wallace said.

“Their monitoring has been important in tracking how the cyclone pool is operating in practice, and in highlighting both the progress made and the areas where continued focus is needed”

Dr Wallace said the report confirms that the pool is delivering on its core objective of lowering reinsurance costs and supporting more affordable premiums in higher-risk areas, while also reinforcing the broader context in which insurance markets operate.

“The pool was designed to address a specific driver of insurance costs, and it is encouraging to see evidence that those benefits are flowing through to many policyholders,” he said.

“At the same time, the report reinforces that insurance pricing is influenced by a broader set of factors. Addressing affordability in a sustained way will require continued progress on mitigation, stronger recognition of resilience measures, and a coordinated approach across industry and government.”

The ACCC’s findings also highlight the importance of continuing to strengthen the link between mitigation and insurance pricing, and ensuring consumers have clearer information about how risk reduction can affect premiums.

Dr Wallace said ARPC remains focused on supporting the long-term effectiveness of the pool.

“The conclusion of the ACCC’s monitoring role is an important milestone, but it is not the end of the task” he said.

“We will continue to work with governments, insurers, and communities to improve understanding of risk, support resilience, and ensure the pool contributes to more sustainable and affordable insurance outcomes for Australians in cyclone-prone regions.”

For media inquiries, please contact Alexander Drake, Head of Public Affairs and Communications on (02) 8223-6777 or [email protected]