The Government is ensuring that there is downward pressure on insurance premiums for Australians who live in cyclone‑prone areas.
Today the Government is announcing a review of the of the Terrorism and Cyclone Insurance Act 2003
The review will consider whether the Cyclone and Terrorism reinsurance pools are meeting their purpose, that incentives to mitigate the risk of losses are maintained and that the governance, administration and resourcing of both pools remain appropriate.
This is the first statutory review of the cyclone reinsurance pool (cyclone pool) since it was established in 2022.
The terrorism reinsurance pool provides insurers with reinsurance for commercial property and business interruption loses because of a Declared Terrorism Incident.
The cyclone pool is designed to reduce insurance premiums for households, small businesses and strata, with medium to high cyclone and related flood damage risk, by reducing the cost of reinsurance.
The Australian Reinsurance Pool Corporation (ARPC) operates the terrorism and cyclone reinsurance pools
Small business marine property insurance policies won't be included in the cyclone pool because modelling shows it would have a negligible impact on affordability and potentially lead to an increase in costs.
The Government encourages all interested parties to make a submission.
The consultation paper for the review and actuarial modelling by Taylor Fry are available on the Treasury website.
Submissions will close on 11 November 2025.
