The cyclone reinsurance pool has resulted in home premiums falling 37% on average in the highest-risk regions, analysis shows.

The Australian Reinsurance Pool Corporation’s latest premium assessment confirms the drop since the program launched in October 2022.

Access to insurance has also strengthened, with a 27% increase in policy availability in the highest-risk areas over the same time.

However, premiums for the lowest-risk bands increased by 31% on average.

ARPC CEO Christopher Wallace says the findings show the pool is delivering on its purpose.

“Insurance affordability remains a significant and ongoing challenge for many Australians, particularly in regions facing heightened exposure to natural hazards,” Dr Wallace said.

“These results show the cyclone pool is providing practical support where it is needed most by helping to reduce premiums and improve access to cover in higher cyclone risk areas.”

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The report shows improvements have been sustained over the past six months, despite pressure across global and domestic insurance markets.

Drawing on insurer quote data, the analysis confirms reductions have been most pronounced in medium- to high-risk areas, which is consistent with the pool’s targeted design.

ARPC says changes in lower-risk regions “largely reflect broader insurance market conditions rather than the impact of the pool”.

Similar trends are evident for SMEs, while movements in business interruption premiums have been mixed and remain influenced by broader market factors.

Dr Wallace says the pool is part of a broader, co-ordinated effort to address insurance affordability challenges.

“The cyclone pool is one important part of a wider response to improving insurance outcomes in vulnerable communities,” he said.

“It is contributing to more stable and accessible insurance markets in high-risk areas, alongside ongoing work across government and industry to strengthen resilience and reduce long-term risk.”

The ARPC will use the findings to inform future scheme pricing reviews. The premium assessment document is available here.