Australian Reinsurance Pool Corporation (ARPC) has released updated analysis showing that the Cyclone Reinsurance Pool (cyclone pool) is delivering significant downward pressure on insurance premiums, and improving insurance availability for Australians living in cyclone-prone areas.
The main
findings from the 2025 Premium Assessment include:
- Significant premium reductions: Home insurance premiums for the highest cyclone risk areas have decreased by an average of 39 per cent from pre-cyclone pool levels to January 2025. Medium-risk properties have also seen notable savings.
- Affordability for SMEs: Small and medium enterprises (SMEs) in high-risk areas are also benefiting, with 31 per cent premium reductions for Buildings and Contents cover.
- Improved insurance access: Quote success rates for home insurance has increased across all risk bands, with the greatest improvements in high-risk areas (66% pre-cyclone pool compared to 84% in January 2025), indicating greater insurer appetite to provide coverage in cyclone-prone regions.
These results highlight the cyclone pool meeting its core objectives under the Terrorism and Cyclone Insurance Act 2003 – in improving affordability and availability for properties most exposed to cyclone risks.
This assessment is based on quarterly insurer quote data across seven major brands and covering over 4,500 risk profiles. The findings will inform future cyclone pool pricing reviews.
ARPC chief executive Dr Christopher Wallace said: “Since its establishment, the cyclone pool has played a vital role in helping ensure that households and small businesses in northern Australia are not left behind.
“By reducing the reinsurance cost burden for insurers, we’ve seen the pool deliver downward premium pressure – making it possible for more Australians to access the protection they need.
“These findings provide a meaningful signal that cyclone pool premium rates are achieving their intended objectives and leading to significant premium reductions for medium and high-risk policyholders.”
ARPC conducted its first Premium Assessment data analysis in January 2024.