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ARPC weighs strata mitigation discounts in cyclone pool 

The Australian Reinsurance Pool Corporation is considering introducing mitigation discounts on strata policy wind premiums as part of cyclone pool rate changes to apply from next April.

The proposed discounts have been developed through a research partnership with James Cook University Cyclone Testing Station and aim to provide incentives for mitigation against structural damage from strong wind and losses from water ingress.

The ARPC is reviewing cyclone pool premium rates to ensure they meet legislative objectives and has released a consultation paper.

Changes under consideration are generally minor, with the strata mitigation the main adjustment.

Measures that could qualify for a mitigation discount would include roof upgrades, window protection, having solid core external timber doors, and the installation of overflows for boxed eaves and gutters.

Pool data will be updated to include the 2024 Geoscape Geocoded National Address File, which includes 15.6 million addresses nationally.

The cyclone reinsurance pool started on July 1 2022, with the first insurers joining on January 1 2023. The ARPC is inviting feedback on current and proposed pool premium rates by July 26 and plans to release the new premium rates before September 30.

Consultation details are available here.