What is the Cyclone Reinsurance Pool?
What the Pool is, who runs it and how it helps keep cyclone insurance affordable.
A shared approach
to cyclone risk.
$10bn
Australian Government
guarantee
3.2m
Properties covered
approximately
$1bn+
Claims paid
since 2022
Your insurer
The Pool
Run by ARPC
More affordable insurance
About the Pool
The Cyclone Reinsurance Pool was established by the Australian Government to help improve the accessibility and affordability of cyclone insurance in cyclone-prone areas of Australia.
The pool is operated by Australian Reinsurance Pool Corporation (ARPC) and works behind the scenes with insurers to help manage cyclone-related risks.
While most homeowners do not interact directly with the pool, its purpose is to support a more sustainable insurance system for households and businesses exposed to cyclone risk.
The pool is one part of a broader effort to help communities become more resilient to future cyclone events.
1 July 2022
The Pool started, backed by a $10 billion Australian Government guarantee.
Your insurer
ARPC does not sell insurance to households. Your insurer still sets your premium.
Why was it set up?
Rising costs
Insurance in northern Australia had become much more expensive than in the rest of the country.
Gaps in cover
Some households were under insured or had no insurance at all.
Lower premiums
It aims to bring premiums down for homes with medium to high cyclone risk, with little impact on lower risk homes.
What does it cover?
Homes
Home and contents insurance, including landlord and farm residential policies.
Strata
Residential strata buildings where at least half the floor space is residential.
Small business
Commercial property with a total sum insured of $5 million or less.
It covers damage from a cyclone and related flooding, such as storm surge, during a declared cyclone event.
Where mitigation fits
Stronger homes mean less damage and smaller claims. That helps keep insurance affordable over the long term.
Some insurers may recognise eligible mitigation improvements when assessing cyclone risk. Speak with your insurer to understand what may be recognised.