AUSTRALIAN CYCLONE REINSURANCE POOL GETS GREEN LIGHT

The Australian federal government has announced a A$10bn cyclone reinsurance pool for the northern part of the country. The pool will underwrite cyclone and cyclone-related flood for privately-owned homes and businesses from July 2022, backed by a government guarantee. It will cover properties north of the Tropic of Capricorn. In excess of 500,000 property insurance policies are expected to be eligible for the cover, which could reduce premiums by more than A$1.5bn. A Treasury-led taskforce will now work with the insurance industry on the final design of the reinsurance pool. Welcoming the news, Insurance Council of Australia chief executive Andrew Hall said: “We look forward to working with the Government on the consultation and design process.”