Australian cyclone reinsurance pool covers 65% homes 6M ahead of deadline
The state-backed Australian Reinsurance Pool Corporation (ARPC) entered the second half of 2023 with 65% of homeowners policies ultimately backed by its cyclone pool, still six months ahead of its first enrolment deadline, the ARPC has said.
"Additional insurer customers are joining the cyclone pool, and have started transferring their home, strata, and SME reinsurance cover to the cyclone pool," ARPC said at the kick-off of its fiscal year.
ARPC expects a 95% coverage rate by the commencement of the 2023-24 cyclone season on November 1, one month ahead of the first deadline and more than a year from the planned conclusion of the mandatory roll-out.
Suncorp is the latest major addition to the ARPC plan, announcing its move this week in tandem with publication of its mid-year reinsurance renewals structures.
Participation in the new programme is mandatory for a major swathe of the industry with cyclone-exposed coverage.
Insurers with gross written premiums of $300 million or more in direct homeowners have to end-2023; smaller players have an extra year.
Insurers with less than $10 million cyclone pool eligible GWP, Lloyd's underwriters and unauthorised foreign players can opt in at their choice.
The ARPC cyclone pool covers home, residential and commercial strata, and small business policies. Mandatory participants do not have rights to hold back portions of their eligible books.
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