Australian Reinsurance Pool Corporation has been found by the national auditor for the Australian Government, the Australian National Audit Office (ANAO), to be effective in managing its terrorism reinsurance scheme.
The report found that the ARPC has effective processes for reviewing and collecting premiums, as well as assessing whether the scheme’s participation requirements are being met.
ARPC Chief Executive Dr Christopher Wallace welcomed the report, stating, “This finding reflects ARPC’s vision to be an effective provider of terrorism risk insurance that facilitates private participation, supports national resilience and reduces losses arising from catastrophic events caused by terrorism.”
“It also reflects ARPC’s commitment to constantly strive to improve outcomes and meet the objectives of the scheme.”
However the ANAO performance audit did recommend the treasury review the options available to rebuild ARPC’s capital following an event leading to significant claims on the scheme, in order to minimise the need for premium increases.
This recommendation was agreed by the treasury.
