Cyclone Reinsurance Pool (CRP) - FAQ’s 

The Government has created a cyclone and related flood damage reinsurance pool. The pool commenced operation on 1 July 2022 and is operated by the Australian Reinsurance Pool Corporation (ARPC). The pool operates Australia-wide but targets support to cyclone-prone areas, which are mainly in northern Australia.

On 30 March 2022, Parliament passed the Treasury Laws Amendment (Cyclone and Flood Damage Reinsurance Pool) Bill 2022.

With cyclone reinsurance pool, the Government expects to lower the insurance premiums for eligible households and small businesses by decreasing the cost of reinsurance, which is a significant cost component of premiums for policies with high cyclone and related flood damage risk. The pool is not designed to make a profit margin, so savings are passed on to consumers. The pool will cover cyclone and related flood damage. This includes wind, rain, rainwater, rainwater run-off, storm surge, and riverine flood damage caused by a cyclone.

Eligible cyclone related losses include damage that:

  • Is caused by a cyclone;
  • Commences during a declared cyclone event (declared by the Bureau of Meteorology); and
  • Covers damage due to wind, rain, rainwater and rainwater run-off, storm surge and flooding where these hazards are covered under the policyholder’s choice of insurance cover

ARPC stands for the Australian Reinsurance Pool Corporation (ARPC). Government has assigned ARPC to manage and operate Cyclone Reinsurance Pool.

DSH Insurance to date has not committed to a participation date but plans to work with ARPC in the later part of 2022. DSH Insurance have until 31 December 2024 to join.

Household/ residential property - Includes home building cover for standalone and detached homes as well as contents and property owner insurance.

It also covers Strata and small business cover, which isn’t offered by DSH Insurance.
*No sum insured threshold applies for household residential property.

No, individual consumers do not have to join Cyclone Reinsurance Pool. Only insurance organisations are eligible to join.

Essentially people residing in cyclone prone areas especially in Northern Australia will potentially have an impact by CRP.

Essentially people residing in designated cyclone prone areas especially in Northern Australia will have an impact by Cyclone Reinsurance Pool.

As per ARPC, Cyclone Reinsurance Pool aims to lower the reinsurance cost for most policies with medium-to-high exposure to cyclone risk especially in northern Australia.

DSH Insurance to date has not committed to a participation date. However, DSH Insurance has committed that it will pass on potential savings in eligible policyholder’s insurance premium once it enters the scheme. DSH Insurance will reach out to eligible policyholders and notify about the changes accordingly. For more information, please log into DSH Insurance website.

ARPC will validate the premium submission when insurers submit premium returns. ARPC will also conduct insurer customer audits.