Creation of an Australian cyclone reinsurance pool

The Australian government has released legislation to establish a cyclone and flood reinsurance pool. The pool will come into force on 1 July 2022 to cover private properties and small businesses.

The initiative is designed to make insurance more readily available to households and small businesses in cyclone-prone areas of Australia.

Local insurers are expected to review and test the model's functionality to reduce rates and improve the overall coverage availability against this type of risk.

The pool will be managed by the Australian Reinsurance Pool Corporation (ARPC) and supported by a government warranty of 10 billion USD.