This page summarises Achmea Farm Insurance’s entry into the Cyclone Reinsurance Pool, effective 1 October 2024. If you have any questions after reviewing this information, please contact us at [email protected] or call 1800 724 214.

 

What is the Cyclone Reinsurance Pool?
The Federal Government has implemented a reinsurance pool for insurance companies to transfer their risk for cyclones and cyclone-related flood damage, called the Cyclone Reinsurance Pool (cyclone pool). This pool is backed by a $10 billion Government guarantee and has been operated by the Australian Reinsurance Pool Corporation (ARPC) since 1 July 2022. Entering the cyclone pool is mandatory for insurers.

 

What is reinsurance?
Reinsurance is insurance for insurers, whereby insurers transfer parts of their risk portfolios to reinsurers, limiting their exposure and claims. This helps insurers maintain financial stability, especially after (a series of) significant weather events.

 

What is the purpose of the Cyclone Pool?

The aim of the cyclone pool is to improve accessibility and affordability of insurance in cyclone-prone areas.

 

I am an Achmea Farm Insurance client, what does this mean for me?

The cyclone pool is a reinsurance arrangement between the ARPC and Achmea Farm Insurance. This means that:

  • Policyholders cannot join the cyclone pool, only insurers can.
  • Our service and product offering remain unchanged by this arrangement.
  • Claims will continue to be managed by our team in the usual manner.

Is the Cyclone Pool restricted to certain geographical areas?

The cyclone pool operates Australia wide, but targets support to cyclone-prone areas which are primarily located in northern Australia.

 

Does the Cyclone Pool cover all assets?

Only home buildings and contents can be reinsured through the cyclone pool, as Government legislation excludes all other farm assets from this reinsurance arrangement.

 

What does the Cyclone Pool mean for premiums?

Several factors influence the overall cost of insurance, including the farm’s location and construction type/year, associated risks, the type of cover and excesses selected, and the risk mitigation strategies in place.

Premiums are also adjusted for inflation and market trends, such as rising labour costs, construction materials prices, and reinsurance expenses.

Any savings achieved from our reinsurance arrangement with the ARPC are being taken into account when calculating overall premiums.

 

What support can Achmea Farm Insurance provide?
We understand the importance of affordable insurance and offer various options to balance cost-effectiveness with the cover you need. For assistance, please contact us using your preferred communication method:

Where can I find more information about your terms and conditions?

Please refer to the relevant All-in-One Farm Pack Product Disclosure Statement and your policy documentation to check what level of cover and excesses you have selected for your farming operations.

 

Where can I find more information about the cyclone pool?

Please visit www.arpc.gov.au/reinsurance-pools/cyclone for more detailed information about the Cyclone Pool.