IAG joins Cyclone Reinsurance Pool
Australia and New Zealand’s largest general insurer with brands including NRMA Insurance, CGU and WFI, has joined the Federal Government’s Cyclone Reinsurance Pool (the Pool).
The Pool is administered by the Australian Reinsurance Pool Corporation (ARPC). Its aim is to reduce insurance premiums for eligible policyholders in cyclone-prone areas of Queensland, the Northern Territory, and Western Australia.
IAG will pass on savings from the Pool to new customer policies and policy renewals for eligible ³Ô¹ÏÍøÕ¾, Commercial property (equal to or less than $5 million), Residential Strata, and Landlord policies.
The extent of savings for policyholders will vary depending on their individual circumstances. Factors that influence a customer’s premium include a property’s exposure to severe weather risks, the cost of claims and inflationary impacts on our supply chain, and government taxes and levies.
There are no changes for customers when they need to lodge a claim.
In addition to participating in the Pool, IAG will continue to advocate the importance of further investment in disaster mitigation initiatives to help reduce severe weather risk across the country and to improve insurance affordability and availability.
IAG Managing Director and CEO Nick Hawkins said there has been welcome progress with the Federal Government’s focus on identifying opportunities to reduce severe weather risk and increased disaster mitigation funding.
“Investment in mitigation not only helps to protect lives, properties, businesses and critical infrastructure, it helps to reduce the financial, physical and social costs of recovering from severe weather and natural disasters,” Mr Hawkins said.
“Delivering these mitigation projects, along with improved land use planning so people are no longer put in harm’s way, and strengthening building codes, must be a priority for the nation.
“These measures are critical for the safety of communities across the country and will help to address the affordability and availability of insurance for all Australians.”
In June this year, IAG welcomed the Federal Government’s Disaster Ready Fund announcement of nearly $400 million in funding for key mitigation projects, in collaboration with state, territory, and local governments.
IAG is also part of the Government’s Hazards Insurance Partnership (HIP) which aims to identify opportunities for reducing disaster risk.
