Cyclone Reinsurance Pool

Frequently Asked Questions

Below are some of the questions you might have regarding the Cyclone Reinsurance Pool. If you require further assistance, please do not hesitate to contact our team.

What is the Cyclone Reinsurance Pool (CRP)?

The government has implemented the CRP for insurance companies to transfer their risk for cyclones and cyclone-related flood damage, which is backed by a $10 billion annually re-instateable government guarantee. The CRP operates as a reinsurance arrangement between insurers and Australia Reinsurance Pool Corporation (ARPC), whereby Guild Insurance pays claims and then seeks reinsurance recovery. In return, Guild provides the pool with the required premium.

When did the cyclone pool begin operating?

The CRP came into effect on July 1, 2022. As a small insurer, Guild will be joining the pool effective from July 1, 2024. All policies commencing on or after this date will be automatically provided coverage under the CRP.

What types of insurance policies does the cyclone pool cover?

The CRP will cover all domestic home & contents, landlords, mixed and residential strata, and small business policies with less than $5 million total property and business interruption sum insured across all locations covered by the pool.

How are premiums being calculated?

All premium impacts from the Cyclone Reinsurance Pool will be automatically applied when eligible customers receive their annual policy renewal, or for any new business requests from 1 July 2024.

The ACCC is monitoring the pricing of insurers who join the cyclone pool, and data is being collected to evaluate the impact of the Pool and ensure savings are being passed through to policyholders.

The extent of premium impacts 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, mitigation features installed at a location as well as government taxes and levies.

How will the Australian Competition and Consumer Commission (ACCC) be involved?

The government has directed the ACCC to monitor insurers’ pricing before and after the CRP was introduced. The ACCC will collect data on pricing, costs, and profits to evaluate the impact of the cyclone pool and assess whether the savings from the cyclone pool are being passed through to policyholders.

How does the CRP recognise the impact of policyholders who have mitigation measures in place?

While the aim of the Cyclone Reinsurance Pool is to reduce insurance premiums for cyclone-exposed customers by lowering reinsurance costs, actual premium savings may be impacted by inflation and other natural disasters.

The ARPC intends to keep incentives in place for policyholders who consistently reduce their risk by way of employing risk mitigation factors for their properties.

The impact that these mitigation factors will have on premiums depends on a range of other cost factors, including product coverage, claims service costs, taxes, government fees, duties and charges. The reinsurance premium we pay to the ARPC will be automatically factored into the policy premiums.

The reinsurance premium we pay to the ARPC will be automatically factored into the policy premiums.

How can policyholders, insurers, and brokers get more information or access videos about the cyclone pool?

For more information on the CRP or to watch the ARPC Cyclone Pool Introductory Video, please visit

Do I need to do anything different when making a claim?

There are no changes for customers when they need to lodge a claim.