The Australian Reinsurance Pool Corporation (ARPC), the federal body that administers Australia's terrorism and cyclone reinsurance pools, has announced that ARPC chief underwriting officer Michael Pennell (pictured above) will retire later this year after more than two decades at the organization.
Pennell joined ARPC in its early years and held a central role in the design and administration of the Terrorism Reinsurance Pool. He later helped lead the establishment and implementation of the Cyclone Reinsurance Pool, which provides coverage for cyclone-related damage in northern Australia.
Both pools operate under the Terrorism and Cyclone Insurance Act 2003. The CUO role oversees underwriting and treaty administration across the two schemes and contributes to terrorism catastrophe modeling and pricing.
Pennell's departure comes as the Australian Reinsurance Pool Corporation navigates a period of structural change in its terrorism retrocession program.
For 2026, ARPC arranged $2 billion in retrocession coverage with a $500 million deductible, reflecting a reduced limit and higher attachment point after meeting with 35 reinsurers ahead of the placement.
The revised structure follows updated legislation that now explicitly extends the definition of terrorism to include state-sponsored acts, broadening the scope of risk the Australian reinsurance pool is designed to cover.
Pennell was awarded the Public Service Medal in the 2017 Australia Day Honours List for "outstanding public service in the development of the terrorism insurance scheme." ARPC said it would celebrate his service more formally closer to his departure date.
ARPC chief executive Dr. Christopher Wallace said Pennell's "leadership, professionalism and commitment to purpose have helped shaped both the terrorism and cyclone reinsurance pools and strengthened Australia's resilience to catastrophic events."
Wallace added that the corporation remains focused on continuity and stability as the succession process moves forward.
The corporation has begun recruiting for its next chief underwriting officer. ARPC said the process is aimed at ensuring a smooth transition and maintaining confidence among insurers, reinsurers and government partners.
