Australia’s terror insurance administrator, Australian Reinsurance Pool Corporation (ARPC), has increased its private reinsurance capacity in its confirmed $3.065 billion retrocession reinsurance programme.
The $3.065 billion retrocession reinsurance programme covers about $3.5 trillion in Australian-based commercial property sector assets by insured value, up from $3.4 trillion in 2017.
Dr Chris Wallace, ARPC Chief Executive, said ARPC increased private sector participation in the scheme by “lowering the retrocession deductible from $350 million to $285 million and renewing the remainder of the program within our budget.”
He said; “ARPC remains well positioned to protect Australian businesses from economic losses, including property damage and business interruption, in the event of a Declared Terrorist Incident.
“Our private sector retrocession reinsurance programme provides increased scheme capacity to pay for large terrorism events, and protects the Government’s Commonwealth guarantee and Australian taxpayers.”
The reinsurance programme plus ARPC’s net assets and the $10 billion Commonwealth guarantee, provides continuing scheme capacity to pay claims of over $13.4 billion.
More than two-thirds of the ARPC programme were completed on a multi-year basis, providing a degree of stability for all stakeholders.
The ARPC Chief Executive Dr Wallace and Chief Underwriting Officer, Michael Pennell, met with almost 70 reinsurers in key global markets to negotiate the 2018 programme.
