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Seimon Griffiths

SCA announces Northern Australia Reinsurance Pool Legislation to be Introduced this Week.




Please find below a summary of information releasd by Strata Community Association with regard to the Northern Australia Reinsurance Pool.


8 February 2022: Assistant Treasurer Sukkar announced legislation had been finalised for the Northern Australia Reinsurance Pool and introduced to parliament during the sitting period commencing Tuesday 8 February 2022.


The government has released ambitious premium reduction targets and is hoping that the $10 billion Reinsurance Pool and the $40 million for the North Queensland Strata Title Resilience Pilot Program will benefit strata properties with up to a 58 per cent premium discount for those properties in most acute stress, with 880,000 people covered by the reinsurance pool and premiums reduced by $2.9 billion over 10 years.


The government has not at this stage revealed the modelling these figures are based on, or the way the Australian Reinsurance Pool Corporation (ARPC), who will oversee the scheme, will interact with insurers.


Key wins for Strata include:


  • Mixed-use strata buildings qualify for the reinsurance pool with 50 per cent residents as opposed to the 80 per cent included in previous draft legislation.

  • There will be a review of the reinsurance pool’s effectiveness and the program after 12 months.


Recognition of the need for mitigation funding and attention to the issue of stamp duties and taxes on premiums contributing to high premiums is now required to ensure the insurance issues in Northern Australia are solved for good.


See the media release from the Prime Minister's office here.


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