More insurers join the cyclone reinsurance pool ahead of disaster season

Three of the four major insurers; Allianz, QBE and Suncorp have now joined the pool, exceeding predicted timelines for coverage of policies by the cyclone pool. As of 1 July 2023, 65% of all Australian home insurance policies are now covered by the cyclone pool.

By the commencement of the 2023-24 cyclone season in November, an estimated 95% of home insurance policies will be covered by the cyclone pool. This is a great outcome for Australians 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. The Federal Government intends to address this by implementing a hazard risk reduction and mitigation program.

In the October budget, there was an allocation of over $25 million for initiatives to improve affordability issues driven by natural hazard risk. On top of that, the government has committed a further $200 million a year ongoing for disaster prevention and resilience projects.