Australian Reinsurance Pool Corporation (ARPC) has asked its cedants to notify it of any potential claims linked to the Bondi Beach attack, as the terrorism reinsurance framework is activated for the event. To assist the ARPC in assessing potential losses and preparing for discussions with its retrocessionaires, all insurer clients have been requested to advise ARPC “as soon as possible” of any potential claims or losses arising from the Bondi Beach incident. The ARPC has also reminded the market that, under the Terrorism and Cyclone Insurance Act 2003 (TCI Act), terrorism exclusions in eligible policies do not apply once an incident is declared a terrorism incident for insurance purposes. In such circumstances, a terrorism exclusion has no effect on a loss or liability under an eligible policy.
Insurers retain the responsibility to assess, adjust, and pay any claims on eligible policies in accordance with all other original policy terms and conditions, including limits, deductibles, and sublimits. For underwriting, claims, and reinsurance teams, this places the Bondi-related terrorism exposure within the statutory scheme rather than being managed through standard terrorism exclusion provisions.
The Bondi Beach attack on Dec. 14 has been declared a terrorism incident for insurance purposes under the TCI Act, following a determination by Treasurer Jim Chalmers. The declaration activates the Terrorism Reinsurance Pool (TRP), administered by ARPC, for eligible terrorism losses arising from the incident. Under the TCI Act, the ARPC provides reinsurance for commercial property, business interruption, and public liability insurance against terrorism catastrophe losses. The scheme is supported by a $10 billion Commonwealth guarantee that provides capacity for insurers when a terrorism incident is declared.
For this event, the ARPC has confirmed that the reduction percentage has been set at 0%. In practice, this means there is no reduction to eligible insurer liabilities when calculating reinsurance recoveries under the TCI Act. ARPC chief executive Dr Christopher Wallace said the declaration sets out the framework insurers will use to manage claims related to the incident. “The Terrorism Reinsurance Pool exists to safeguard the Australian insurance market from the financial impact of rare but severe terrorism events. [The] declaration ensures insurers can apply the TCI Act provisions and begin assessing eligible claims under the framework of the scheme. We are deeply saddened by the tragic incident that occurred at Bondi Beach. Our thoughts are with the families who have lost loved ones, the survivors, and everyone affected by this event,” Wallace said.
The Insurance Council of Australia (ICA) has declared the Bondi attack a Significant Event, a status the council said will help it coordinate member responses and monitor claims data across the market. Impacted businesses are being encouraged to contact their insurer or broker to clarify coverage triggers, waiting periods, deductibles, and sublimits under their policies. Commenting on behalf of the industry, ICA CEO Andrew Hall said: “Our thoughts first and foremost are with Australia’s Jewish Community in this time of great mourning for the victims of Sunday’s horrendous attack. The industry is committed to supporting those Bondi businesses impacted through the recovery ahead.”
The National Insurance Brokers Association (NIBA) has issued a statement on behalf of its board, extending condolences to those affected and outlining brokers’ role in assisting clients with claims and coverage questions following the incident. NIBA also acknowledged the actions of police, emergency services personnel, paramedics, first responders, and civilians at the scene, and encouraged anyone experiencing distress to seek support through recognised mental health services or broker network employee assistance programs.
Health fund HCF is offering additional mental health support options for members in the wake of the attack, in parallel with broader insurance and community responses. Eligible HCF members can access a free and confidential HealthyMinds Check-in with a registered psychologist through telehealth providers My Mirror or PSYCH2U, including services for teenagers aged 12 to 17. HCF said its Bondi and Pagewood branches remain open for members and that it is working with health partners and community organisations in the coming weeks.
The insurance market response is occurring alongside an investigation led by the NSW Joint Counter Terrorism Team (JCTT) under Operation Arques. NSW Police said emergency services responded to reports of a public place shooting at Bondi Beach at about 6:40pm on Dec 14. Sixteen people have died, and 40 have been injured. Two alleged offenders were shot by police, with one dying at the scene and the other remaining in hospital under police guard.
The NSW Police Commissioner has deemed the incident terror related. The JCTT – comprising the NSW Police Force, Australian Federal Police, Australian Security Intelligence Organisation, and NSW Crime Commission – has seized firearms and improvised explosive devices from the crime scene and from properties in Bonnyrigg and Campsie. A separate critical incident investigation, Strike Force Belen, is examining the circumstances of police involvement, overseen by the Law Enforcement Conduct Commission.
