The Cyclone Reinsurance Pool’s own data has surfaced a coverage gap running through broker portfolios across northern and coastal Australia: as of June 30, 2026, only 64% of home building policies in the pool include storm surge cover, and 66% of home contents policies.
That leaves roughly one in three properties reinsured through the pool – all in cyclone-exposed areas – without cover for one of the most destructive forces a cyclone can produce.
The figures are drawn from the Australian Reinsurance Pool Corporation’s (ARPC) quarterly statistical release, published on October 6, 2026.
Wind cover is universal across the pool. Every home property carries it. Flood cover for riverine inundation is also relatively strong, sitting at 86% of home building policies and 87% of home contents policies, broadly stable since the pool commenced in July 2022.
Storm surge is where the exposure sits – and it has not closed.
Since commencement, the proportion of home policies with storm surge cover has grown by approximately 10 percentage points. The pool’s own data shows that growth has plateaued well short of full coverage.
Storm surge is not a secondary peril. In coastal communities, it can be the primary source of structural damage when a cyclone makes landfall. A policy carrying wind cover but no storm surge component will not respond to that loss.
For brokers with clients in cyclone-prone areas, the question at renewal is whether those clients know what their policy will and will not pay when it matters most.
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The pool has received 133,078 claims to date, with a total net incurred value of approximately $1.65 billion. As of July 31, 2026, ARPC had paid approximately $1.37 billion – leaving around $280 million in net incurred claims yet to be settled.
Tropical Cyclone Alfred, which struck during the 2024-25 season, remains the largest single event the pool has recorded. Claims from both Alfred and Tropical Cyclone Jasper continued flowing through during the June quarter.
For brokers managing clients affected by either event, the process is not yet closed.
Mitigation discounts on home premiums reached $9.7 million as of June 30, 2026, up from $9 million at December 31, 2025. Eligible measures include roller door bracing, window protection, roof tie-down upgrades, and roof replacement.
Set against total annual pool premiums of approximately $675 million across home, strata, and SME, the $9.7 million in discounts represents roughly 1.4% of the pool’s premium base.
The Australian Competition and Consumer Commission’s (ACCC) fifth and final insurance monitoring report, released in June 2026, noted that some insurers have not yet implemented mitigation discount frameworks – meaning clients who have completed eligible upgrades may not be receiving any pricing benefit, depending on which insurer holds their policy.
Mitigation discounts have also been extended to strata and SME properties. ARPC says take-up data for those segments will be included in future reports as insurers begin collecting the relevant information.
National Insurance Brokers Association (NIBA) CEO Richard Klipin has consistently linked the mitigation issue to the broader affordability challenge. “A proactive approach to disaster mitigation, focused on long-term investments at both community and household levels, will reduce the impact of natural disasters, enhance resilience, and alleviate the financial pressures that increase insurance premiums,” Klipin said in October 2025.
The ACCC’s final report confirmed that, within two years of insurers joining the pool, average home insurance premiums in higher cyclone risk areas fell 14% and small business premiums fell 31% against pre-pool prices.
Those savings are real for clients in elevated cyclone risk zones. The pool’s reach, however, is targeted by design. The ACCC confirmed it directly benefits around 2% of policies nationally. For the remainder of the market, premiums have continued rising.
NIBA has previously noted the outsized role brokers play in this environment. “Insurance brokers play a critical role in supporting households and businesses, particularly in high-risk regions. The higher use of brokers in northern Australia reflects the genuine difficulties many face in obtaining insurance protection in cyclone-prone areas,” the association said in July 2025.
The Australia Institute’s 2025 polling found approximately 1.4 million homes across Australia were either uninsured or underinsured – a figure that reflects how premium pressure has pushed some households below adequate cover.
Average annual pool premiums are approximately $193 for home risks, $820 for strata, and $252 for SME. The pool covers approximately 3.2 million buildings representing more than $2.5 trillion in aggregate building sums insured.
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Storm surge cover should be confirmed at renewal for any client in a coastal or cyclone-exposed area. Wind cover alone will not respond to inundation from storm surge, and the pool’s data shows the gap across the portfolio is material.
For clients who have upgraded roofing, braced roller doors, or added window protection, confirm whether their insurer has a mitigation discount framework operating. The ACCC has flagged this as uneven across the market.
The Alfred claims tail remains active. With approximately $280 million in net incurred claims outstanding across the pool, brokers with affected clients should verify where those claims stand.
