The Australian Reinsurance Pool Corporation (ARPC) has published its latest quarterly statistics, highlighting claims activity and coverage trends for the cyclone pool as of June 2025.
The cyclone pool, which began operations in July 2022, is designed to support insurance affordability and availability for properties in cyclone-prone regions across Australia.
For the quarter ending June 30, 2025, the ARPC reported that the cyclone pool received 111,860 claims, with a combined net incurred value of $1.12 billion.
The majority of these claims were associated with ex-Tropical Cyclone Alfred, which was the most significant event during the reporting period.
The cyclone pool currently provides coverage for more than 3.2 million buildings, offering protection against financial losses resulting from cyclones.
Annual in-force premiums are estimated at $563 million for home policies, $56 million for strata, and $25 million for small to medium enterprise (SME) properties.
The pool also delivered $8.2 million in annual discounts for home properties that have undertaken mitigation measures at the property level.
Established by the federal government, the cyclone pool’s primary objective is to make insurance more accessible and affordable for policyholders facing medium to high cyclone risk.
The pool operates nationwide but focuses its support on regions where cyclone exposure is greatest, providing reinsurance to participating insurers.
The ARPC issues quarterly reports to track claims trends and monitor the pool’s effectiveness.
In July, the Australian Competition and Consumer Commission (ACCC) released its fourth insurance monitoring report, which examined the cyclone pool’s impact on insurance premiums.
Data from the ACCC shows that, since the cyclone pool’s inception, average home and contents insurance premiums in medium-to-high cyclone risk areas have dropped by 11% per $100,000 sum insured. In contrast, premiums for properties with low or negligible cyclone risk have risen by 4% and 7%, respectively.
Premium reductions have been most pronounced in coastal communities such as Mackay, Cairns, and Townsville, where median premiums fell by approximately 15%. Karratha also saw a decrease of 9%.
Small business policyholders in cyclone-prone regions experienced an average premium reduction of 24%, while strata insurance premiums in these areas declined by 7% on average. Townsville and Karratha recorded the largest strata premium decreases, at 28% and 23%, respectively.
Despite these downward trends, the ACCC noted that insurance costs remain elevated in much of northern Australia.
Average annual home and contents premiums now exceed $3,000 in north Queensland and the Northern Territory, and surpass $4,600 in north Western Australia.
Strata insurance premiums in north Western Australia have increased by 18%, with average costs exceeding $18,000 per policy.
The ACCC also observed that the cyclone pool has not yet led to a significant expansion of insurer participation in northern Australia.
No new insurers have entered the market since the pool’s launch, and only minor changes have been made to underwriting practices and exposure limits.
