Terrorism Insurance Act Review December 2021
The Australian Government established the Terrorism Insurance Scheme (the scheme) on 1 July 2003 under The Terrorism Insurance Act 2003.
The scheme was introduced to alleviate the market failure, which occurred following the terrorist attacks in the United States on September 11, 2001 that resulted in global reinsurers refusing to underwrite commercial property damage caused by acts of terror.
The scheme is administered by the Australian Reinsurance Pool Corporation (ARPC), a public financial corporation operating with Government capital and backed by a $10 billion Commonwealth
guarantee. The Minister responsible for the Act is required to prepare a report every three years reviewing whether the scheme should continue. All previous reviews recommended the Act remain in force.
The 2021 Triennial Review (the Review) recommends that the scheme remain in place.