The Australian Reinsurance Pool Corporation (ARPC) has reached a major milestone with total Cyclone Re Pool claims now exceeding A$1 billion since the program was launched.
ARPC is a public financial corporation established under the Terrorism and Hurricane Insurance Act of 2003. The terrorism reinsurance pool began operations on July 1, 2003, and the hurricane reinsurance pool began operations on July 1, 2022.
To date, ARPC has made claims payments related to 20 declared cyclones and provided support to residential, small and medium enterprise (SME) and strata policyholders in northern Australia.
ARPC chief executive Christopher Wallace said the milestone highlights the pool’s role in building resilience in hurricane-prone areas and helping to reduce insurance costs in high-risk areas.
“Passing $1 billion in claims payments is a significant achievement for the program and, more importantly, for the communities the program is designed to support,” said Wallace.
“The Hurricane Pool was established to lower insurance premiums for homes, small businesses and strata properties in areas with moderate to high hurricane risk by providing insurance companies with affordable, government-backed reinsurance. This milestone demonstrates that the Pool is working as intended – providing timely, reliable support following a severe hurricane event.
“While we recognize this achievement, it is important to remember the people and communities who have been displaced, damaged or otherwise devastated by these disasters. Our role is to ensure that Cyclone Pool provides reliable support when it is needed most, and to help these communities recover and strengthen over time.
“Starting from our first announced event, Tropical Cyclone Gabriel to impact Norfolk Island in 2023, the cyclone pool has grown rapidly. It has demonstrated its ability to support insurers through multiple events while maintaining operational integrity and financial strength.”
Going forward, ARPC will continue to focus on improving operational efficiencies, maintaining a responsive claims process, and supporting targeted mitigation activities to improve the long-term risk profile of properties in hurricane-affected areas.