AUSTRALIAN REINSURERS WELCOME A$10BN CYCLONE POOL BILL

Australian insurers have welcomed draft legislation launched by the federal government for a cyclone and related flood reinsurance pool. The Insurance Council of Australia (ICA) said the new bill will form part of a solution to improve affordability and availability of insurance against such perils in the northern areas of the country. The draft legislation follows the Australian government’s announcement in May of a A$10bn ($7.06bn) reinsurance pool. This pool will be administered by the country’s terrorism pool, the Australian Reinsurance Pool Corporation.