The Australian Reinsurance Pool Corporation (ARPC) has reported strong support from insurers in its 2024/25 customer survey, with results showing continued confidence in both the terrorism and cyclone reinsurance pools.
The survey, carried out by independent firm ORIMA Research, received responses from 75 insurers, marking the highest level of engagement since the study was first introduced.
The ARPC recorded an overall stakeholder perceptions index score of 84 out of 100, with nearly all participants describing their working relationship with the organisation as good or very good.
Other findings included a reputation index score of 82, reflecting insurer views on professionalism, knowledge and customer focus, and a performance index score of 84, which highlighted strong feedback on responsiveness and communication.
Insurers also rated ARPC highly for compliance support, training, and operational guidance, giving a compliance facilitation index score of 83.
On capability and effectiveness, the corporation achieved a score of 75, with insurers citing confidence in its technical and industry expertise.
At the same time, respondents pointed to areas for improvement, such as more transparency in decision-making, fewer changes to data requirements, and a simplified audit process.
ARPC chief executive Christopher Wallace said the results show insurers value the corporation’s role.
“We are pleased to see strong support from our insurer customers. These results reflect the dedication of our team and our ongoing efforts to strengthen our engagement with the industry,” he said.
He added that the ARPC would continue to focus on improving analytics, refining operations, and ensuring the reinsurance pools adapt to the sector’s requirements.
“We are committed to maintaining a customer-focused approach, continually refining our operations to better support our insurer customers. As we look ahead, we’re focused on delivering value, strengthening our data and analytics capability, and ensuring the pools meet the evolving needs of the insurance industry,” Wallace said.
A separate review by the Australian Competition and Consumer Commission (ACCC) has found the cyclone reinsurance pool is beginning to reduce premiums for households and businesses in high-risk regions.
The ACCC’s fourth insurance monitoring report is the first to capture results since all eligible insurers joined the pool, which began in 2022.
Commissioner Peter Crone said the pool is meeting its central aim of lowering premiums for customers in cyclone-exposed regions, but affordability challenges remain in northern Australia.
The data showed that, since the pool’s introduction, average home and contents premiums in medium-to-high risk areas have dropped by 11% per $100,000 sum insured.
In coastal centres such as Mackay, Cairns and Townsville, premiums fell around 15%, while Karratha recorded a 9% reduction.
Premium changes varied across customer types. Small businesses in cyclone-prone areas saw an average fall of 24%, while strata premiums declined by 7% overall.
Some communities reported steeper reductions, with strata premiums down 28% in Townsville and 23% in Karratha.
Despite these decreases, insurance costs remain elevated. Home and contents premiums exceed $3,000 annually in north Queensland and the Northern Territory, while strata premiums in north Western Australia average more than $18,000 per policy.
The ACCC noted that the pool has not yet encouraged greater insurer competition in the north, with no new market entrants since 2022.
Progress on incentivising private risk mitigation has also been limited, despite most insurers having frameworks to recognise such efforts.
