A cyclone pool assessment finds average quoted home cover premiums for medium- to high-risk policies remain 14%-37% lower than before insurers joined the scheme, amid upward pricing pressures in the wider market.

The quote success rate – expressed as a proportion of total attempts – has also improved, by 25%-28%, the Australian Reinsurance Pool Corporation’s October assessment shows.

Premiums and quote success rates have generally remained stable in higher-risk regions since an assessment earlier this year.

In lower-risk areas, premiums are still rising, in a reflection of general trends.

“These results show the improvements we have seen in higher cyclone risk areas are being sustained, despite ongoing premium pressures across the broader insurance market,” ARPC CEO Christopher Wallace said.

“The cyclone pool is designed to concentrate its support in areas of medium and high cyclone risk, while allowing premiums in lower-risk areas to remain broadly comparable with the private reinsurance market.”

Average SME contents premiums are 34% lower in the highest-risk wind band compared with before insurers joined the pool. Relative to January, premiums have increased modestly across most wind bands, while remaining unchanged for those at highest risk.

SME business interruption cover results were more mixed, with average premiums higher than pre-pool levels on average.

The ARPC says business interruption represents less than 1% of in-force cyclone pool premium, and it will monitor outcomes through its rate assessments.

The cyclone pool recorded a $701 million positive operating result last financial year, reversing a $1.2 billion negative outcome in the previous 12 months.

The change was driven by lower claims costs and a reduction in provisions for earlier events, mainly as Cyclone Alfred claims uncertainty reduced.

“The significant movement between the past two financial years demonstrates the inherent volatility of cyclone risk and why the financial position of the pool needs to be considered over the longer term,” Dr Wallace said.

“The cyclone pool is designed to absorb this volatility, while maintaining its ability to meet claims and supporting insurance affordability in areas with medium to high cyclone risk.”

Nine cyclone events were declared last season, with seven generating pool claims.

Season claims costs were $203 million, which was below the modelled long-term average annual loss of $638 million.

Net liabilities improved to $33 million at June 30, compared with $734 million a year earlier.