Reinsuring Terrorism with ARPC

Insurers may reinsure the risk of claims for eligible terrorism losses with ARPC by entering into a reinsurance treaty Agreement with ARPC and paying the appropriate premium each quarter. Premiums that insurance companies pay for reinsurance to ARPC contribute to the pool of funds available to cover claims from declared terrorist incidents.

ARPC has a standard reinsurance Agreement. The Agreement requires the reinsured to identify all eligible contracts of insurance within their portfolio and pay ARPC terrorism reinsurance premium based on all contracts identified as being eligible under the Terrorism Insurance Act. The Agreement specifies the premium payable based on risk location. 


Any company which writes eligible insurance contracts may reinsure its terrorism risk with ARPC. An eligible insurance contract is one which provides insurance cover for loss or damage to eligible property and associated business interruption and public liability losses (please refer to Section 7 of the Act). Eligible property is defined as the following property that is located in Australia:

  • buildings (including fixtures) or other structures or works on, in or under land
  • tangible property that is located in, or on, such property
  • property prescribed by regulation.

Farms can also obtain cover if they hold insurance against business interruption.

The provisions of the TI Act does not cover the building or contents of a mainly residential building where the building sum insured value is less than $50 million or the floor space used wholly or mainly for residential purposes is more than 80%.

The Regulations also exclude contracts of insurance which provide cover for, inter alia, workers’ compensation insurance, marine insurance, aviation insurance, motor vehicle insurance, life insurance, health insurance, private mortgage insurance, medical indemnity insurance and professional indemnity insurance.


In order to apply for reinsurance with ARPC the following information is required:

  1. Full company name and Australian Business Number (ABN)
  2. Requested agreement inception date
  3. Company street address
  4. Company postal address
  5. Primary contact (general contact person, include phone number and email address)
  6. Secondary contact (general contact person, include phone number and email address)
  7. Australian fire and ISR gross written premium for the previous financial year.

Once this is received, ARPC will complete the schedule and respond with a signed copy of the reinsurance agreement for your review, to be counter signed and returned.

Client obligations

The reinsurance agreement requires clients to submit the following information:

  • quarterly premium returns
  • annual fire and ISR gross written premium returns  (both ARPC eligible and ineligible)
  • annual aggregate reports of sums insured by postcode
  • loss estimates (if applicable)
  • claims (if applicable).

RISe provides clients with a simple, secure and effective means of submitting this information. To ensure the information held by ARPC is current, clients are requested to use RISe to verify their details annually and advice of any relevant changes.

An ARPC Cedant Quick Reference Guide (including due dates for information) is available for viewing here.