Reinsurance pool legislation passes

The passing will see the establishment of a reinsurance pool for cyclone and cyclone-related flood for small business insurance policies, as well as weak privately owned homes and strata corporations, set to start from 1 July.

The ICA has also called on the Australian Reinsurance Pool Corporation (ARPC) to release its pricing schedule in order to give insurers time to price in reinsurance costs.

“Insurers welcome the passage of the reinsurance pool legislation, which is an important next step on a very complex issue,” ICA CEO Andrew Hall said.

“The pool is scheduled to commence in just three months, so it’s vitally important that insurers and their customers are able to understand how and to what extent this will impact on premiums.

“We look forward to the ARPC releasing that information as soon as possible.”

However, Mr Hall said that the pool is just “one piece of the puzzle” and the recent floods throughout Queensland and NSW highlighted the “urgent need” for investment in measures to protect homes and communities.

“In the lead up the election in coming weeks it is incumbent upon the government to not only assist with recovery, but announce further investments to better protect communities from the impacts of extreme weather,” he said.

During the floods in March, the ICA reported it had received almost 120,000 claims in the two states.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.