The Australian Reinsurance Pool Corporation (ARPC), a government-backed provider of reinsurance for terrorism-related risks, has released its 2023-24 Annual Report, posting an operating result of $710.1 million.
During this time, ARPC received a total of $1.1 billion in gross written premiums and net assets of $1.67 billion under management.
Dr. Christopher Wallace, Chief Executive of ARPC, stated, “During the period, ARPC has experienced a period of rapid growth having successfully operationalised the cyclone pool, while continuing to deliver the terrorism pool and improving our efficiency and effectiveness.”
He added, “In this reporting period, ARPC has made significant progress on strategic projects including transitioning terrorism insurer customers to PACE (Protecting Australians for Catastrophic Events), ARPC’s insurer customer system and uplifting other systems, processes and resources for the cyclone pool.”
As of June 30, 2024, 18 insurers had joined the cyclone pool, covering 98% of eligible home insurance policies, nearly 100% of eligible strata insurance policies, and 87% of eligible small-to-medium enterprise (SME) policies.
Dr Wallace noted, “The cyclone pool has successfully met the legislative requirement to have all the large general insurers writing business in northern Australia under the cyclone pool by the end of 2023. We are well and truly on track to achieve our next target, which is for remaining insurers writing business in northern Australia to have joined by 31 December 2024.”
The 2023-24 season saw five tropical cyclones, resulting in an estimated $155 million in claims for the cyclone pool. ARPC has successfully processed claims for insurer customers within its service standards.
Dr Wallace concluded, “ARPC will continue to work with insurers, reinsurers, Government and broader community stakeholders to deliver on our purpose to, through reinsurance, improve the accessibility and affordability of insurance for the Australian community for terrorism and cyclone risk.
“Our Annual Report shows the efforts of all the ARPC team members who together have made this result possible.”
