ARPC releases cyclone pool statistical report
28 October 2024
The Cyclone Reinsurance Pool (cyclone pool) has reached close to 99 per cent market coverage of the eligible insured population in northern Australia by sum insured or premium, according to statistics released today.
Australian Reinsurance Pool Corporation (ARPC) which operates the cyclone pool, announced the milestone in the Cyclone Reinsurance Pool Premium & Exposure Statistics Report. The report draws on data generated by the cyclone pool, which was established 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 30 June 2024, the cyclone pool had:
- Reached about 99 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.
- Annual in-force cyclone pool premiums were approximately $520m for home policies, $52m for strata and $24m for small to medium enterprise (SME) policies.
- The total discount from mitigation measures applied to in-force home premiums as at 30 June 2024 is $6.0m.
ARPC will undertake regular pricing reviews 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. Read the full report.
Background on the cyclone pool
The cyclone pool was launched by ARPC 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).
For media inquiries, please contact Alexander Drake, Head of Public Affairs and Communications on (02) 8223-6777 or [email protected]