Cyclone Reinsurance Pool - Frequently asked questions
What is the Cyclone Reinsurance Pool?
The Australian Government is implementing a reinsurance pool for cyclones and related flood damage, which will be backed by a $10 billion Government guarantee and cover household, strata, and small business property insurance policies.
Why has the Cyclone Reinsurance Pool been created by the government?
The intention of the Cyclone Reinsurance Pool is to improve insurance affordability for households and small businesses in high-risk areas by lowering the cost of their insurance premiums. This is enabled by reducing the cost of reinsurance for these policies
What areas of Australia will the Cyclone Reinsurance Pool cover?
The Cyclone Reinsurance Pool will operate Australia wide but target support to cyclone-prone areas, which are mainly in northern Australia.
Who administers the Cyclone Reinsurance pool?
The Cyclone Reinsurance pool is administered by the Australian Reinsurance Pool Corporation (ARPC)
When will the Cyclone Reinsurance Pool commence operation?
The Cyclone Reinsurance Pool legislation commenced on 1 July 2022, however large insurers have until 31 December 2023 to participate given the significant changes that will need to be made to systems and processes.
Where can I find more information about the Cyclone Reinsurance Pool?
You can find more information by clicking on the following Home - Australian Reinsurance Pool Corporation (arpc.gov.au)
When will Insurers enter the pool?
The pool will result in Insurers making significant changes to their systems and processes. All large Insurers have until 31 December 2023 to make these changes and participate in the pool.
How will customers be notified of any changes to their premium resulting from the introduction of the Cyclone Reinsurance pool?
Customers will not be notified directly, however they may notice premium adjustments on their renewal notice. Please note that some customers may not receive a premium reduction/change.
What changes will I see for my policy after the Cyclone Reinsurance Pool is introduced on 1 July 2022?
There will be no immediate changes to your policy on 1 July 2022, as large insurers have until 31 December 2023 to participate in the pool.
Will Insurers pass on all of the savings for my policy?
Insurers must ensure any Cyclone Reinsurance Pool savings will be passed through to our customers.
Will my policy coverage change as a result of the introduction of the Cyclone Reinsurance Pool?
There is no change in coverage resulting from the implementation of this legislation.
