Reinsurance pool for cyclone positive: ICA

The Insurance Council of Australia (ICA) has welcomed the passage of legislation to enable the establishment of a Reinsurance Pool for cyclone and cyclone-related flood for homes, strata corporations and small businesses.

The Australian Reinsurance Pool Corporation (ARPC) will now release its pricing schedule to give the sector time to price in reinsurance costs and provide visibility to policyholders on expected premium reductions.

A Reinsurance Pool is just one lever available to influence premium prices in cyclone-impacted regions of Australia.

To achieve sustainable premium reductions for those exposed to the risk of extreme weather, including cyclones, governments must increase investment in local infrastructure and household-level programs.

ICA CEO Andrew Hall said: “Insurers welcome the passage of the reinsurance pool legislation, which is an important next step on a very complex issue. The Pool is scheduled to commence in just three months, so it’s vitally important that insurers and their customers are able to understand how and to what extent this will impact on premiums.”