As the official cyclone season commences in Northern Australia, insurance industry leaders and government agencies are highlighting the importance of early preparation for both households and businesses.
The Cyclone Reinsurance Pool, administered by the Australian Reinsurance Pool Corporation (ARPC), is advising property owners to take practical steps to reduce risk and limit potential damage from severe weather events - tips that brokers can pass on to their clients.
Dr Christopher Wallace, ARPC chief executive, noted that the previous season’s Tropical Cyclone Alfred demonstrated how quickly weather conditions can deteriorate, leading to widespread property damage and service disruptions in regions such as South-East Queensland and Northern New South Wales.
“Now is the time to prepare yourself, your family, and your property for the season ahead,” he said.
He recommended actions such as inspecting roofs, securing loose items outdoors, and reviewing insurance coverage.
The ARPC is encouraging investment in property upgrades that improve cyclone resilience.
Eligible improvements include roof tie-downs, structural bracing, cyclone-rated shutters, impact-resistant windows, and reinforced garage doors.
“All households in Northern Australia, regardless of whether they’re in a low, medium, or high cyclone-prone area, can access premium discounts if they’ve completed approved mitigation works,” Wallace said.
Insurers are being urged to recognise these mitigation efforts by offering premium reductions to policyholders who meet cyclone-resilient standards.
Wallace advised policyholders to consult their insurer about available discounts or to compare quotes to ensure they benefit from mitigation-linked savings.
The Cyclone Reinsurance Pool’s mandate includes supporting affordable insurance for residential, strata, and small business properties in cyclone-affected regions.
The pool also aims to promote risk-reducing activities that contribute to stronger, more resilient communities.
The reminder comes after the ARPC released its 2025 Financial Outlook Report, providing an update on the Cyclone Reinsurance Pool’s performance and future projections.
Despite the significant claims arising from Tropical Cyclone Alfred, which totalled $1.8 billion for the 2024-25 financial year, the pool is expected to meet its obligations from existing assets and future premiums.
Wallace said: “The cyclone pool’s operating result and accumulated position will fluctuate year to year, given the volatile nature of cyclone events. One of our legislative objectives is to be cost neutral or to breakeven in the long term.”
Premium rates were reviewed in September 2025, with no material changes, reflecting the pool’s capacity to absorb volatility and maintain affordability for policyholders.
The ARPC also reported an increase in annual premium discounts for residential mitigation, rising from $6.3 million to $7.9 million year-on-year.
Discounts for strata properties have been in effect since April 2025, and similar incentives for small to medium-sized enterprises are scheduled to begin in April 2026.
With the cyclone and storm season underway, insurance professionals are being reminded to support policyholder preparedness, promote risk mitigation, and remain vigilant against repair scams.
The industry continues to work toward balancing affordability, resilience, and effective risk management for communities across cyclone-prone regions.
