As of 1 July 2023, 65% of all Australian home insurance policies are now covered by the cyclone pool. Three of the four major insurers; Allianz, QBE and Suncorp have now joined the pool, this is a great result, exceeding predicted timelines for coverage of policies by the cyclone pool.
By the commencement of the 2023‑24 cyclone season in November, we estimate 95% of home insurance policies will be covered by the cyclone pool. This is a great outcome for northern Australians who have been plagued with uncertainty as the cyclone season approaches.
All major insurers are required to join the cyclone pool by December 2023. A full list of insurers can be found on the ARPC website.
A key strategy in addressing premium increases is to tackle the underlying risks. This is why the Government is implementing a hazard risk reduction and mitigation program. In the October budget we provided over $25 million for initiatives to improve affordability issues driven by natural hazard risk. On top of that, we committed a further $200 million a year for disaster prevention and resilience projects.
New Australian Reinsurance Pool Corporation (ARPC) board appointments
I am pleased to announce today, the appointment of Julie‑Anne Schafer as new Chair of the ARPC Board. Julie‑Anne joined the ARPC board in 2021 and brings a wealth of experience from roles working across both the public and private sector including as president of the National Competition Council and former Chair of RACQ insurance.
The Albanese government has also recently appointed several exceptional members to join the ARPC board who bring including those with strong backgrounds in Northern and Western Australia. I welcome new board members; Greg Nucifora, Rod Whithear, Evelyn Horton, Eilis Hurley, Fran Raymond and Oscar Shub.
I would also like to thank the outgoing Chair, Ian Carson AM and former Board members, Robin Low, Maria Fernandez PSM, and David Foster for their outstanding contribution to the ARPC and work to establish the cyclone reinsurance pool, which will provide benefits to the communities across northern Australia for years to come.