IAG joins cyclone reinsurance pool
IAG has joined the Federal Government’s Cyclone Reinsurance Pool, ahead of the deadline for large insurers to join before the end of this year.
The Australian Reinsurance Pool Corporation administers the scheme, which aims to assist policyholders in areas of Queensland, the NT and WA that have faced soaring premiums due to their exposure to cyclones.
IAG says it will pass on savings from the pool to new customer policies and renewals for eligible home, commercial property (equal to or less than $5 million), residential strata, and landlord policies, with impacts to depend on individual circumstances.
CEO Nick Hawkins says there has also been welcome progress with the Federal Government’s focus on identifying opportunities to reduce severe weather risk and the increased disaster mitigation funding.
“Delivering these mitigation projects, along with improved land use planning so people are no longer put in harm’s way, and strengthening building codes, must be a priority for the nation,” he said.
“These measures are critical for the safety of communities across the country and will help to address the affordability and availability of insurance for all Australians.”
Large insurers were given until the end of December to join the cyclone pool while smaller firms have an additional 12 months.
The scheme covers cyclone damage and related flooding for the period from when a cyclone begins until 48 hours after it ends, based on Bureau of Meteorology notifications.