The Act

The Terrorism Insurance Act 2003 (Cth) (TI Act) was enacted by the Commonwealth Parliament following the events of 9/11 and the withdrawal of terrorism cover by insurance companies.

The TI Act establishes ARPC to provide insurance cover for eligible terrorism losses and to perform any other function prescribed in the regulations. For details about the Scheme established under the TI Act, go to The Scheme under ‘What we do’.

Section 38 provides that the Minister may give directions to ARPC in relation to the performance of its functions and powers.  Ministerial Directions may be accessed below.

Section 41 of the Act requires that at least once every three years the Minister is to prepare a report that reviews of the need for the TI Act to continue. The Triennial Reviews may be accessed below.

Cyclone Reinsurance Pool Legislation passes

 On 30 March 2022, Parliament passed the Treasury Laws Amendment (Cyclone and Flood Damage Reinsurance Pool) Bill 2022. The Bill received Royal Assent and became law on 31 March 2022.

The Act amends the Terrorism Insurance Act 2003 to establish a framework for a cyclone and cyclone-related flood damage reinsurance pool by extending the operation of the terrorism reinsurance scheme administered by Australian Reinsurance Pool Corporation (ARPC); as well as amends the title of the Act to the Terrorism and Cyclone Insurance Act 2003. It also amends the Insurance Act 1973 to create a civil penalty for insurers who do not reinsure eligible cyclone risks with the ARPC.

 

Act

 

Regulations

Terrorism Insurance Regulations 2003

Terrorism Insurance Amendment (Cyclones and Related Flood Damage) Regulations 2021

  • The Terrorism Insurance Amendment (Cyclones and Related Flood Damage) Regulations 2021 (the Regulations) amends the Terrorism Insurance Regulations to confer the ARPC with the new function of preparing to operate a cyclones and related flood damage reinsurance scheme. The Regulations will allow the ARPC to support the Government in designing and implementing the cyclones and related flood damage reinsurance scheme. These changes are being made in regulations to provide sufficient time for the ARPC to commence preliminary planning and undertake preparatory work so that the cyclones and related flood damage reinsurance scheme can be operational, if agreed by Government, from 1 July 2022.
  • View the Regulation here
  • Terrorism Insurance Amendment (Cyclone and Related Flood Damage Reinsurance Pool) Regulations 2022
  • View the Regulation here

Explanatory Memorandum

  • View the Terrorism Insurance Bill 2002 (2003) Explanatory Memorandum here
  • View the Terrorism Insurance Amendment (Cyclones and Related Flood Damage) Regulations 2021 Explanatory Statement here
  • View the Treasury Laws Amendment (Cyclone and Flood Damage Reinsurance Pool) Bill 2022 Explanatory Memorandum here 

 

Ministerial Directions

  • Assistant Treasurer to ARPC (Payments to the Commonwealth) (No. 1) Direction 2022
    • PDF                                                                                                                                                                                                                             
  • Assistant Treasurer to ARPC (Payments to the Commonwealth) (No. 1) Direction 2020
  • Assistant Treasurer to ARPC (Payments to the Commonwealth) (No. 1) Direction 2019
  • Assistant Treasurer to ARPC (Premiums) Direction 2019      
  • Assistant Treasurer to ARPC (Payments to the Commonwealth) (No. 2) Direction 2019  
  • Minister for Revenue and Financial Services to ARPC (Payments to the Commonwealth) Direction 2018
  • Minister for Revenue and Financial Services to ARPC (Risk Retention) Direction 2017
  • Minister for Revenue and Financial Services to ARPC (Premiums) Direction 2017
  • Minister for Revenue and Financial Services to ARPC (Payments to the Commonwealth) Direction 2017
  • Assistant Treasurer to ARPC (Payments) Direction 2016
  • Assistant Treasurer to ARPC (Payments to the Commonwealth) Direction 2015
  • Assistant Treasurer to ARPC (Premiums) Direction 2015
  • Treasurer to ARPC (Payments to the Commonwealth) Amendment Direction 2014
  • Minister for Financial Services and Superannuation to ARPC (Payments to the Commonwealth) Direction 2013
  • Minister for Financial Services and Superannuation to ARPC (Payments to the Commonwealth) Direction 2012
  • Assistant Treasurer to ARPC (Premiums) Directions 2011
  • Treasurer to ARPC (Risk Retention) Direction 2007

 

Triennial Reviews of the TI Act

Reviews were conducted in 2006, 2009, 2012, 2015, and 2018 and 2021. Previous reports can also be accessed below: