Tuesday 24 May 2022 | 13:36 | SYDNEY
Tuesday 24 May 2022 | 13:36 | SYDNEY

We have a terrorism insurance pool?


Sam Roggeveen


14 November 2012 10:45

This was unknown to me until yesterday, but yes, Australia does have something called the Australian Reinsurance Pool Corporation. The best plain English description of ARPC's role that I could find was not on its own website but comes from the National Insurance Brokers Association:

The terrorist attack on the World Trade Centre in New York on September 11, 2001 caused a major upheaval in the insurance industry that affected most insurers. Because the potential scale of terrorist attacks could not be accurately assessed, insurers globally sought to exclude terrorism coverage from their property and business interruption policies. As a result, some countries established “pools” where funds could be collected to help cover the costs stemming from a future terror attack.

The Federal Government established the Australian Reinsurance Pool Corporation (ARPC) in 2003 to offer reinsurance for terrorism risk in Australia.

The scheme covers insurance for loss of or damage to commercial property that is owned by the insured, insurance for business interruption arising from loss of or damage to or inability to use eligible property, and insurance for liability of the insured arising from ownership or occupation of eligible property. Private residential property is not included in the scheme. Risk cover is for any declared terrorist incident, except events involving damage from nuclear causes.

There's no larger point here. Just passing it along on the assumption that it's not widely known.