INsight feature: deep dive into the cyclone pool
INsight feature: deep dive into the cyclone pool
23 February 2023
The government’s new cyclone reinsurance pool will have a positive impact on insurance affordability over the long term, the Australian Reinsurance Pool Corporation (ARPC) says.
The latest Insurance News podcast features an in-depth interview with ARPC CEO Chris Wallace. Dr Wallace explains how the pool operates, how it saves money, and also answers quesions on the level of savings and whether the pool could be expanded to cover flood.
The ARPC has been tasked with running the pool, which launched in July and is backed by a Federal Government $10 billion guarantee.
Some insurance industry observers have criticised the expected level of savings provided to consumers through the scheme, but Dr Wallace is confident of its success.
“I would say that the savings may not be enormous in the first period, but they’re going to have a substantial impact over the long term,” he says.
“We are the only part of the insurance and reinsurance sector in Australia and globally that’s reducing prices. And we would hope that will not only stabilise prices, but will impact increasingly each year over time.”
You can find previous episodes of INsight published here.
