The Australian Reinsurance Pool Corporation (ARPC) has released new data from its 2025 Premium Assessment, showing that the Cyclone Reinsurance Pool (cyclone pool) is contributing to lower insurance premiums and broader access to coverage for individuals and businesses in cyclone-prone areas of Australia.
According to the updated analysis, home insurance premiums in regions classified as having the highest cyclone risk have decreased by an average of 39% compared to levels prior to the pool’s implementation. Medium-risk properties have also experienced reductions in premium costs.
For small and medium-sized enterprises (SMEs), the data shows that premiums for buildings and contents coverage in high-risk areas have declined by 31%. In addition, access to insurance has improved.
A previous report from the ARPC noted that Premium quotes in regional centers such as Broome, Townsville, Proserpine, and Mackay were up to 38% lower for home insurance coverage compared to rates prior to the pool's existence.
Small business insurance quotes in these same locations also experienced an average decline of 38%.
ARPC notes that quote success rates for home insurance have risen across all risk bands, increasing from 66% to 84% in high-risk regions between the pre-pool period and January 2025.
The findings are aligned with the cyclone pool’s objectives as outlined in the Terrorism and Cyclone Insurance Act 2003, which includes improving affordability and availability of insurance in areas with significant exposure to cyclone-related risks.
The assessment is based on quarterly insurer quote data provided by seven major brands and incorporates more than 4,500 risk profiles. ARPC stated that these results will inform future pricing reviews for the cyclone pool.
ARPC chief executive Dr. Christopher Wallace (pictured above) said the cyclone pool has played a key role in supporting households and small businesses in cyclone-prone areas of northern Australia.
“By reducing the reinsurance cost burden for insurers, we’ve seen the pool deliver downward premium pressure – making it possible for more Australians to access the protection they need,” Wallace said.
Wallace said the latest assessment results indicate that premium rates under the cyclone pool are aligning with intended policy outcomes, particularly for properties facing medium and high cyclone risk.
The organization conducted its first Premium Assessment analysis in January 2024. The 2025 review continues to monitor the pool’s impact and will guide its ongoing development.
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