ARPC releases cyclone pool statistical report

03 May 2024

Australian Reinsurance Pool Corporation (ARPC) has successfully achieved a key milestone for market coverage of northern Australia by the Cyclone Reinsurance Pool (cyclone pool), according to a tranche of statistics released today.

The Cyclone Reinsurance Pool Premium and Exposure Statistics Report, which will be released periodically by ARPC in the future, draws on data generated by the cyclone pool, which was launched on 1 July 2022, under the amended Terrorism and Cyclone Insurance Act 2003 (the Act).

The cyclone pool operates Australia wide, but targets support to cyclone-prone areas, and provides reinsurance for insurers operating in those areas.

Key findings from the report include that, as at 31 December 2023, the cyclone pool had:

• Reached about 95 per cent cover of eligible risks (in terms of sum insured or premium), with the remainder to join the pool by the end of 2024,
• Achieved a mix of premium in force made up of approximately 87 per cent home and contents insurance, with strata making up 9 per cent, and small to medium enterprise (SME) insurance making up 4 per cent, and
• Provided premium discounts on home insurance policies thanks to selected risk mitigation measures adopted by consumers, totalling approximately $5.4M.

ARPC will undertake an annual pricing review to maintain the adequacy of the cyclone pool and as a result, some of the statistics contained in future editions of this report will fluctuate.

For more information on the cyclone pool, see the Cyclone Reinsurance Pool section of the website. The full cyclone pool statistical report can be accessed here.

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

Background on the cyclone pool

The cyclone pool was launched by APRC in 2022 and is intended to help make insurance more affordable and more available in areas with medium to high cyclone risk, for eligible policies in three classes of business – household, strata (residential and some commercial), and for small to medium enterprises (SMEs).