The Australian Reinsurance Pool Corporation (ARPC) has released its latest premium assessment, confirming the Cyclone Reinsurance Pool is continuing to improve insurance affordability and availability in Australia's highest cyclone risk regions.
The report shows that average home insurance premiums in the highest cyclone risk areas have fallen by 37% since October 2022, since the pool was introduced.
Access to insurance has also strengthened, with a 27% increase in policy availability in the highest risk areas since October 2022, as insurer participation in the pool has expanded.
ARPC Chief Executive Dr Christopher Wallace said the findings demonstrate the pool is delivering on its purpose of supporting more affordable and accessible insurance in communities most exposed to cyclone risk.
“Insurance affordability remains a significant and ongoing challenge for many Australians, particularly in regions facing heightened exposure to natural hazards,” Dr Wallace said.
“These results show the cyclone pool is providing practical support where it is needed most by helping to reduce premiums and improve access to cover in higher cyclone risk areas.”
The report indicates these improvements have been sustained over the past six months, with premiums and availability in higher-risk regions remaining broadly stable despite continued pressure across global and domestic insurance markets.
Drawing on insurer quote data, the analysis confirms that reductions have been most pronounced in medium to high-risk areas, consistent with the pool’s targeted design. Changes in lower-risk regions largely reflect broader insurance market conditions rather than the impact of the pool.
Similar trends are evident for small and medium-sized enterprises (SMEs), with premium reductions observed in higher-risk segments following insurers’ entry into the pool. Movements in business interruption premiums have been more mixed and remain influenced by broader market factors.
The cyclone pool was established to improve insurance outcomes in cyclone prone areas by reducing costs in higher risk regions while maintaining premiums in lower risk areas at levels consistent with the broader market.
Dr Wallace said the findings highlight the role of the pool as part of a broader, coordinated effort to address insurance affordability challenges.
“The cyclone pool is one important part of a wider response to improving insurance outcomes in vulnerable communities,” he said.
“It is contributing to more stable and accessible insurance markets in high-risk areas, alongside ongoing work across government and industry to strengthen resilience and reduce long-term risk.”