In an announcement, the ARPC confirmed that Allianz joined the cyclone reinsurance pool as an insurer customer for its home insurance business, including buildings, contents, landlord buildings, landlord contents, and the private dwelling of Farm Pack businesses, effective January 1.
As part of the agreement, the cyclone reinsurance pool will cover all eligible Allianz branded products and brands underwritten by Allianz, including the Territory Insurance Office.
ARPC CEO Dr. Chris Wallace has welcomed Allianz as the inaugural customer of the cyclone reinsurance pool.
“We look forward to working with Allianz to help lower insurance premiums and increase insurance affordability for cyclone-impacted consumers,” Wallace said.
The Australian Consumers Insurance Lobby (ACIL), the consumer representative group on insurance issues, also welcomed Allianz’s decision to join the cyclone reinsurance pool for householder insurance, with the transition of residential strata and small business property expected to commence sometime this year.
“Allianz’s participation in the cyclone reinsurance pool is a win for consumers who were dealt a significant blow in July when it was revealed that no insurers would be on board for the July 1 rollout,” said ACIL chairperson Tyrone Shandiman in a previous statement.
However, the association noted severe market failures in the strata insurance industry in Northern Australia – including the lack of strata insurers offering coverage for buildings with a sum insured over $5 million for new clients, except for some limited exclusive arrangements – significantly impacting consumer confidence in the Australian insurance industry.
ACIL, formerly the Northern Australia Insurance Lobby (NAIL), aims to work with various stakeholders to ensure the cyclone reinsurance pool’s implementation is fit for purpose for consumers.
