Global insurance giant Insurance Australia Group (IAG) and its brands – NRMA Insurance, CGU, and WFI – have joined the Federal Government's cyclone reinsurance pool.
Administered by the Australian Reinsurance Pool Corporation (ARPC), the cyclone reinsurance pool aims to reduce insurance premiums for eligible policyholders in cyclone-prone areas across Queensland, the Northern Territory, and Western Australia.
As a new member of the cyclone reinsurance pool, IAG will use the savings from the pool for new customer policies and policy renewals for eligible home, commercial property (equal to or less than $5 million), residential strata, and landlord policies.
The extent of the savings will depend on each policyholder's circumstances, including a property's exposure to extreme weather risks, claims costs and inflationary impact on the supply chain, and government taxes and levies.
“Investment in mitigation not only helps to protect lives, properties, businesses, and critical Infrastructure; it helps to reduce the financial, physical, and social costs of recovering from severe weather and natural disasters,” said IAG managing director and CEO Nick Hawkins. “Delivering these mitigation projects, along with improved land use planning so people are no longer put in harm's way, and strengthening building codes, must be a priority for the nation.
“These measures are critical for the safety of communities across the country and will help to address the affordability and availability of insurance for all Australians.”
Aside from participating in the cyclone reinsurance pool, IAG is committed to calling for further investment in disaster mitigation initiatives to reduce extreme weather risks and improve insurance availability and affordability. The group is also part of the government's Hazards Insurance Partnership (HIP), which aims to reduce disaster risk.
IAG's decision to participate in the cyclone reinsurance pool follows the Royal Automobile Club of Queensland's (RACQ) announcement that it will join the pool before the 2023-24 cyclone season.
