Cyclone pool non-disclosure rules frustrate consumers
Cyclone pool non-disclosure rules frustrate consumers
12 September 2022
Cyclone pool non-disclosure terms are frustrating consumers as they continue to seek more information over likely benefits from the scheme.
The Australian Consumers Insurance Lobby (ACIL) says non-disclosure agreements (NDAs) entered into with the Australian Reinsurance Pool Corporation (ARPC) prevent insurers from discussing pricing impacts the scheme will have on clients.
“In our discussions with insurers, we have been advised they are not able to share this information due to NDAs that they have entered into with ARPC in relation to the cyclone reinsurance pool,” Chairman Tyrone Shandiman told insuranceNEWS.com.au.
“ACIL believes the reinsurance pool should be transparent and insurers should be able to share and discuss impacts the reinsurance pool has on consumers and not be restricted by NDAs.”
ACIL was advised in July that Treasury is planning to build a secure online calculator for individual addresses that consumers will be able to access through the ARPC website. It was expected to take about two months to provide the calculator, subject to staff and resources availability.
The ARPC says it recognises that there is community interest in how the the pool will lead to lower premiums for consumers.
“ARPC is working hard to provide more information to consumers that will help them understand how the cyclone pool will help them, and it will be available soon,” a spokesman told insuranceNEWS.com.au.
The organisation will shortly provide average cyclone premiums for CRESTA zones when it publishes revised premium rates before October 1.
The Australian Competition and Consumer Commission has been tasked with monitoring the insurers’ passing through of savings to consumers.
