The Australian Reinsurance Pool Corporation (ARPC) has welcomed the new terms within the 2021 Triennial Review of the Terrorism Insurance Act 2003 (TI Act), which will be conducted by the Treasury.
The review will asses whether or not there continues to be market failure in the private sector supply of terrorism insurance, and consequently whether there is a need for the Act to continue.
The governance, administration and resourcing of the scheme will also need to be reviewed as to whether or not it remains appropriate.
This includes interactions between the Cyclone Reinsurance Pool and the Terrorism Reinsurance Pool and whether the risk of cyber terrorism causing physical property damage should be included in the scheme.
ARPC has expressed support towards this announcement, including connecting stakeholders to The Treasury if they wish to provide input into the Review.
The TI Act requires that a review be conducted at least once every three years to test whether market failure for terrorism insurance exists and therefore whether the act should continue.
Dr Christopher Wallace, ARPC CEO commented: “I am pleased to welcome the terms of reference for the 2021 Triennial Review of the scheme and look forward to supporting The Treasury during the Review.
“The Triennial Review is an important process for making sure ARPC remains fit for purpose, so I strongly encourage ARPC stakeholders to make submissions through The Treasury process.”
