Australian Reinsurance Pool sees insurer participation rise, cyclone pool gains

Access to insurance has improved as well, ARPC said.

The Australian Reinsurance Pool Corporation (ARPC) has released new data showing that the Cyclone Reinsurance Pool is delivering substantial reductions in insurance premiums and improving access to coverage for residents and businesses in cyclone-prone regions.

According to the 2025 Premium Assessment, home insurance premiums in the highest cyclone risk areas have fallen by an average of 39% compared to pre-cyclone pool levels.

Medium-risk areas have also recorded notable decreases. Small and medium enterprises (SMEs) in high-risk locations have seen premium reductions of 31% for Buildings and Contents cover.

Access to insurance has improved as well, with quote success rates for home insurance increasing across all risk categories.

In high-risk areas, the success rate rose from 66% before the cyclone pool’s introduction to 84% as of January 2025, reflecting stronger insurer participation.

The cyclone pool was established under the Terrorism and Cyclone Insurance Act 2003 to improve insurance affordability and availability for cyclone-exposed properties.

The latest assessment is based on quarterly insurer quote data across seven major brands and more than 4,500 risk profiles.

ARPC Chief Executive Dr Christopher Wallace said the cyclone pool has helped reduce reinsurance costs for insurers, leading to more competitive premiums and broader access to coverage. The results will guide future cyclone pool pricing reviews.