2023-24 statistics reflect cyclone pool growth and effective claim processing.
The Australian Reinsurance Pool Corporation (ARPC) has released its annual report for the fiscal year 2023-24, which highlights strong financial and operational performance.
ARPC reported gross written premiums of $1.1 billion and operational profits of $710.1 million. The total net assets under management reached $1.67 billion.
In his report, ARPC CEO Dr. Christopher Wallace emphasised the organization’s recent expansion, stating that ARPC had “operationalised the cyclone pool” while maintaining the terrorism pool and boosting overall efficiency.
“During this reporting period, ARPC has made significant progress on strategic projects, such as upgrading other systems, processes, and resources for the cyclone pool and moving terrorism insurer customers to PACE (Protecting Australians for Catastrophic Events) and ARPC’s insurer customer system,” he said.
18 insurers have joined the cyclone pool by June 30, 2024, offering coverage for 87% of small-to-medium enterprise (SME) policies, nearly 100% of strata insurance policies, and 98% of qualifying home insurance policies.
Additionally, ARPC stated that it has fulfilled its legal obligation to have all of the main insurers in northern Australia that write cyclone business join the cyclone pool by the end of 2023, and it anticipates that other insurers in the area will do the same by December 31, 2024.
Five tropical storms occurred during the 2023–2024 cyclone season, resulting in claims expenses to the cyclone pool of almost $155 million. According to ARPC, claims payments have been handled in accordance with the company’s defined service standards.
Additionally, 225 insurers participated in the terrorist pool, which offered reinsurance for business disruption and commercial property linked to instances of proclaimed terrorism.
In order to improve insurance accessibility and cost for cyclone and terrorism risks, Wallace reiterated ARPC’s dedication to working with insurers, reinsurers, the government, and community stakeholders.
“The ARPC team’s collective efforts have enabled this outcome,” he remarked, referring to our annual report.
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