Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • News

Australia consults on cyclone reinsurance pool

Open-access content Tuesday 25th May 2021

Australia’s federal government is consulting on proposals for a cyclone reinsurance pool taskforce.

Australia consults on cyclone reinsurance pool

Earlier this month the government unveiled plans to launch the reinsurance pool for cyclones and related flood damage mainly in Northern Australia.

The Treasury has now published a consultation paper, seeking feedback from the insurance industry, community representatives and interested stakeholders on the reinsurance pool's final design. The pool, scheduled to start from July 2022, will be backed by a $10 billion government guarantee.

The scheme, which will be managed by the Australian Reinsurance Pool Corporation (ARPC), will cover residential, strata and small business property insurance policies in cyclone-prone areas.The ARPC urges stakeholders to register on the taskforce's webpage for updates and take part in the consultation process, which is open for submissions until June 18, 2021.

The move aims to reduce insurance premiums across Northern Australia by more than $1.5 billion for households, strata and small businesses over 10 years. More than 500,000 residential, strata and small business property insurance policies in Northern Australia are expected to be eligible for cover by the reinsurance pool.

Minister for resources, water and Northern Australia Keith Pitt said high insurance costs are “a problem for business, a problem for local economies and a problem for every person who lives in the North”.

In May, the government also announced a plan to specifically reduce insurance costs for strata properties, by committing $40 million for the North Queensland Strata Title Resilience Pilot Program, to start in 2022.

Strata properties - a model of property ownership in Australia that allows individuals to buy ownership in a larger property or building - face some of the worst insurance affordability pressures in Northern Australia.

The Australian Competition and Consumer Commission said that in 2018-19 the average strata premium was $6,800 in North Queensland, compared with the Australian average of $3,300.

It added that residents have few options other than to pay this premium because strata properties are required to hold insurance under Queensland legislation.

Image Credit | iStock
Filed in:
News
Topics:
Environment
Reinsurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ