NIBA welcomes Cyclone Reinsurance Pool Taskforce

NIBA has welcomed the announcement that the Treasury has commenced a Cyclone Reinsurance Pool Taskforce

Written on 26 May, 2021
Tanaya Das

The National Insurance Brokers Association (NIBA) has welcomed the announcement that the Treasury has commenced a Cyclone Reinsurance Pool Taskforce to consult with industry and community representatives, as well as other interested stakeholders, and develop a final design for the reinsurance pool.

NIBA CEO, Dallas Booth has said, “We will be reviewing the consultation paper closely and will be making a submission to the consultation. We have raised the issues regarding insurance in Northern Australia in many of our submissions and our discussions with the Federal Government, and we look forward to contributing to a final design of a pool that makes insurance accessible and affordable to more people across northern Australia.”

On 4 May 2021, the Government announced its intention to establish a reinsurance pool for cyclones and related flood damage, to commence from 1 July 2022 and be backed by a $10 billion Government guarantee. The pool, to be administered by the Australian Reinsurance Pool Corporation (ARPC), would cover residential, strata and small business property insurance policies in cyclone prone areas, mainly located in Northern Australia.

The Taskforce has released a detailed consultation paper on its webpage. ARPC has encouraged stakeholders to register on the Taskforce webpage for updates, and encourages stakeholders to participate in the consultation process. You can submit responses to this consultation up until 18 June 2021.