The Coalition Government is continuing to act to ensure that Australians have appropriate insurance cover and remain financially protected from acts of terrorism.
The Government has commenced the 2021 review of the Terrorism Insurance Act 2003 (the Act), which established a scheme for replacement terrorism insurance coverage for commercial property. The Act also established the Australian Reinsurance Pool Corporation (ARPC) as a statutory authority to administer the scheme. Both the scheme and the ARPC began operations on 1 July 2003.
As the scheme was established as an interim measure and was intended to operate only while terrorism cover is commercially unavailable on reasonable terms, the Act requires a review be undertaken every three years to assess the need for the scheme to continue in operation. In addition, the 2021 review will consider whether the risk of cyber terrorism causing physical property damage should be included in the scheme.
With the Government’s intention to establish a reinsurance pool for cyclones and related-flood damage, the review will also consider whether the governance, administration and resourcing of the scheme remain appropriate.
The consultation paper can be found on the Treasury website and interested parties are invited to write submissions, on the issues raised by 30 July 2021.
The Government looks forward to working with interested stakeholders to ensure that the scheme continues to be fit for purpose and delivers better outcomes for all Australians.