RACQ has joined the Cyclone Reinsurance Pool on 1 July 2023
What is the Cyclone Reinsurance Pool?
The Australian government is funding a scheme to help lower the cost of insurance, especially in northern Queensland where cyclones are common.
This scheme is called the Cyclone Reinsurance Pool. The goal of the cyclone pool is to make the cost of insurance more affordable for homes and small businesses that have a high or medium risk of being affected by cyclones and cyclone-related flooding. The cyclone pool does this by reducing the cost of reinsurance, which is like insurance for insurance companies.
How does it affect my insurance?
The cost of reinsurance is a significant component of the insurance premiums paid by RACQ members for their policies. Under the Cyclone Reinsurance Pool initiative, the government will provide cost effective reinsurance to insurance companies for their cyclone and cyclone-related flood risk during the cyclone and for the first 48 hours after. The benefits from the cheaper reinsurance will then be passed onto members in their premium.