As the deadline approaches for larger insurers to join the scheme by December 31, almost two-thirds of all Australian home insurance policies are now covered by the cyclone reinsurance pool.
QBE recently joined Allianz and Suncorp in participating in the scheme managed by the Australian Reinsurance Pool Corporation (ARPC).
Hollard, following its acquisition of the Commonwealth Bank’s general insurance business and having a substantial home portfolio, has also joined the pool, alongside RAA Insurance, RAC Insurance, and Youi.
According to a QBE spokesperson, the insurer is “pleased to have concluded the agreement with the ARPC” and “will gradually transfer all eligible policies into the cyclone reinsurance pool, with all relevant policies included by the end of this year.”
As of July 1, Financial Services Minister Stephen Jones reported that 65% of home policyholders are covered by the pool, and he anticipates the figure to reach 95% by the start of the cyclone season in November.
He remarked, “This is a significant achievement for northern Australians who have been burdened with uncertainty as the cyclone season approaches.”
He expressed that the participation of QBE, Allianz, and Suncorp in the scheme represents a “remarkable outcome” as it surpassed the predicted timelines for policy coverage by the cyclone pool.
Introduced last year, the pool, supported by a $10 billion Federal Government guarantee, was designed to alleviate long-standing concerns about premium affordability in northern Australia.
Large insurers must join the scheme by the end of this year, while small insurers have until the end of next year to participate.
Mr. Jones also revealed that Julie-Anne Schafer has been appointed as the new Chair of the ARPC Board, succeeding Ian Carson, who was reappointed for a three-year term in 2020.
Mr. Jones stated that Ms. Schafer, who joined the ARPC board in 2021, possesses extensive experience from her roles in both the public and private sectors, including serving as the president of the National Competition Council and former Chair of RACQ Insurance.
Source : insurancenews.com.au