The National Insurance Brokers Association (NIBA) has welcomed the announcement that the Treasury has commenced a cyclone reinsurance pool taskforce.
The taskforce will consult with industry and community representatives, as well as other interested stakeholders, and develop a final design for the proposed reinsurance pool for cyclones and related flood damage that the federal government tabled in May.
Launching in July 2022, the reinsurance pool will be administered by the Australian Reinsurance Pool Corporation (ARPC) and backed by a $10 billion government guarantee. The pool will cover residential, strata, and small business property insurance policies in cyclone prone areas, mainly located in Northern Australia.
“We will be reviewing the consultation paper closely and will be making a submission to the consultation,” said Dallas Booth, chief executive officer of NIBA. “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.”
