ARPC’s 2020 retrocession programme renewed for 2020
Australia’s terrorism insurance scheme, Australian Reinsurance Pool Corporation, has renewed its retrocession reinsurance program for the 2020 calendar year. The A$3.45 billion retrocession reinsurance program, plus ARPC’s net assets and the A$10 billion Commonwealth guarantee, provides scheme capacity in the event of a declared terrorism incident, against commercial and eligible property assets of just under A$14 billion.
“ARPC’s retrocession program encourages the global insurance market to participate in providing terrorism cover for Australian-based assets, which protects the Commonwealth (Australian Government) guarantee and Australian taxpayers,” said Dr Christopher Wallace, ARPC chief executive.
“ARPC achieved a reduction in pricing for the 2020 retrocession program. The price reduction, plus reinsurers’ appetite to participate, prompted ARPC to extend the top layer to A$350 million for 2020.”
The A$3.45 billion retrocession program and ARPC net assets are the first layers of funding for claims in the event of a terrorism incident.
Dr Wallace and chief underwriting officer Michael Pennell met with almost 70 reinsurers in key global markets to negotiate the 2020 program.
“ARPC remains well positioned to be an effective provider of terrorism risk insurance that facilitates market participation, supports national resilience and reduces potential losses arising from terrorism catastrophe.” said Dr Wallace.
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