Sure Insurance joins cyclone reinsurance pool | Insurance Business Australia
Regional and north Queensland household insurance specialist Sure Insurance (Sure) has joined the cyclone reinsurance pool, effective January 1, 2023, through its product issuers Liberty Mutual Insurance Company and Pacific International Insurance.
Over the past 18 months, Sure has worked closely with the federal government, the Australian Reinsurance Pool Corporation (ARPC), and related government agencies through a comprehensive pool design consultation period.
The insurer's decision to join the cyclone reinsurance pool earlier than required reinforces its commitment to delivering affordable household and residential strata insurance premiums across regional Queensland, Sure managing director Bradley Heath said.
“We will continue to engage with the federal government and the ARPC to assess further enhancements that may benefit Sure policyholders,” Heath said in a statement.
“As we fully transition into the pool, Sure will continue to ensure we provide our policyholders the best deal that we can.”
ARPC welcomes Sure Insurance to the cyclone reinsurance pool
The ARPC, which will administer the cyclone reinsurance pool beginning on July 01, 2023, has welcomed Sure.
“ARPC warmly welcomes the Sure Insurance brand as a customer of the cyclone pool. We look forward to working with Sure Insurance to deliver the benefits the pool will provide for cyclone-impacted consumers,” ARPC chief executive Christopher Wallace said in a statement.
What is Australia's cyclone reinsurance pool?
The cyclone reinsurance pool aims to lower insurance premiums for households and small businesses with high cyclone and related flood damage risk by reducing the cost of reinsurance, a significant cost component of premiums for these policies.
It covers home, strata, and small business policies, including:
- Residential home and contents, including landlord insurance and farm residential cover;
- Residential strata, including mixed-use strata schemes;
- Commercial property policies with less than $5 million total sum insured across risks covered by the pool
- SME up to a maximum $5 million sum insured limit.
Insurance giant joins the cyclone reinsurance pool
Allianz Australia (Allianz) also joined the cyclone reinsurance pool, effective January 01, 2023.
Wallace said: “We look forward to working with Allianz to help lower insurance premiums and increase insurance affordability for cyclone-impacted consumers.”
The Australian Consumers Insurance Lobby (ACIL), the consumer representative group on insurance issues, welcomed Allianz's decision to join the cyclone reinsurance pool.