The Cyclone Reinsurance Pool has paid more than $1 billion in claims since it began in 2022. The incentive meant to cut future claims, however, has barely reached the strata and small business properties brokers insure.
The Australian Reinsurance Pool Corporation’s (ARPC) 2025–26 Annual Report said the milestone followed the pool’s busiest season to date, with nine declared cyclone events. ARPC met all claims and financial obligations without drawing on the $10 billion Commonwealth guarantee. It reported gross written premiums of $1.092 billion across its operations and net assets of about $1.818 billion at 30 June 2026.
“Despite a high level of cyclone activity, ARPC met all claims and financial obligations without drawing on the Commonwealth guarantee, demonstrating the financial strength and resilience of the schemes we manage,” chief executive Dr Christopher Wallace said.
The report’s snapshot of the pool at 30 June shows where mitigation discounts are, and are not, reaching policyholders. Annual premium reductions for risk mitigation totalled $9.39 million on residential policies. On strata policies they totalled $1,716, and on SME policies, nothing. The pool covered 72,500 strata buildings and 101,000 SME buildings in northern Australia as at 31 March 2026, alongside about 3 million homes. Average annual cyclone pool premiums were $801 per strata risk and $240 per SME risk.
Some of the gap reflects timing. Strata discounts have applied since 1 April 2025. SME discounts, developed with James Cook University’s Cyclone Testing Station to reward protection against high winds and wind-driven rain, only took effect on 1 April 2026. ARPC has also said reporting of strata discounts by insurers has been minimal. The report lists raising awareness of mitigation discounts among its priorities, and a 2026 premium rate review is under way.
The terrorism pool also closed a chapter. The report confirmed ARPC paid no terrorism reinsurance claims for either of the year’s declared incidents, at Bondi Beach on 14 December 2025 and in the Perth CBD on 26 January 2026. ARPC does not expect losses to the pool from Bondi because losses remain within insurer retentions, and none were associated with the Perth incident.
For brokers with strata clients in cyclone-exposed areas, the $1,716 figure is the one to act on. Where a building has completed eligible mitigation work, confirm the insurer has recorded it, so the discount reaches the premium. For SME clients, the next renewal is the first opportunity to claim a discount that did not exist a year ago.
