The reinsurance pool for cyclone and cyclone-related flood risk in northern Australia will help make insurance more affordable for home, strata and small business policyholders across the region by covering the risk associated with these extreme weather events in insurance premiums.
The $10 billion reinsurance pool will be administered by the Australian Reinsurance Pool Corporation (ARPC) from 1 July 2022.
IAG Managing Director and CEO Nick Hawkins said people and businesses across northern Australia are set to benefit from greater access to affordable insurance.
“Communities across northern Australia face a high risk of cyclone and cyclone-related flood damage, which is reflected in their insurance premiums. It’s critical insurance is as affordable as possible, so we can help communities recover as quickly as possible when disasters strike,” Mr Hawkins said.
It’s critical insurance is as affordable as possible, so we can help communities recover as quickly as possible when disasters strike.
IAG Managing Director and CEO
“Our research and data tell us that we’re going to see more intense extreme weather events, particularly in northern Australia, and the Cyclone Reinsurance Pool will play an important role in helping to prepare and protect people and communities.
“IAG will continue to work with the Federal Government and insurance industry on the implementation of the reinsurance pool, and we look forward to seeing the benefits for communities across northern Australia.”
In addition to the reinsurance pool, IAG believes greater investment in disaster mitigation is a priority to help protect vulnerable communities from the impacts of natural disasters.
IAG will continue to work with the National Recovery and Resilience Agency to identify opportunities to help reduce these risks across the country.