The Australian Reinsurance Pool Corporation (ARPC) reported receiving 111,860 claims for the quarter ended June 30, with a total net incurred value of A$1.12 billion (US$962.2 million).
Cyclone Alfred accounted for the majority of these, with 101,888 claims and an incurred value of A$985.7 million, according to ARPC’s latest quarterly report.
Perils, a catastrophe loss data provider, has revised its insured loss estimate for Cyclone Alfred to A$1.92 billion. The storm impacted Queensland and New South Wales between Feb. 28 and March 12. This marks the third estimate for Alfred’s insurance market loss, following earlier reductions from A$2.57 billion to A$2.25 billion, and now to A$1.92 billion.
The cyclone pool, established in July 2022, was designed to improve the affordability and availability of insurance in areas with medium to high cyclone risk. It covers eligible policies for homes, strata, and small to medium enterprises.
Elsewhere, ARPC also welcomed the Commonwealth Treasury’s announcement of the scheduled statutory review of the Terrorism and Cyclone Insurance Act 2003 (TCI Act). The review, mandated by legislation, will assess the ongoing need for both the terrorism and cyclone reinsurance pools and examine whether they continue to address Australia’s evolving risk landscape.
ARPC chief executive Dr. Christopher Wallace (pictured above) commented on the review, saying, “This review is an important step in ensuring the reinsurance pools continue to meet the needs of insurers, businesses, and the broader community.”
Wallace encouraged stakeholders to participate and share their perspectives with Treasury.
Earlier this year, ARPC completed its 2025 retrocession program, securing US$2.15 billion in coverage from more than 40 reinsurers. The program was structured with a reduced limit and higher deductible.
As of June 30, 2024, the cyclone pool managed by ARPC had achieved about 99% coverage of eligible risks in northern Australia. Annual in-force premiums for the pool totaled US$520 million for home policies, US$52 million for strata, and US$24 million for SME policies.
The cyclone pool currently provides coverage for more than 3.2 million buildings, with annual in-force premiums estimated at US$563 million for home, US$56 million for strata, and US$25 million for SME properties as of June 2025.
What are your thoughts on this story? Please feel free to share your comments below.
