Allianz expands cover in cyclone-prone north after joining pool – Daily – Insurance News

Allianz Australia says it has started offering direct home and landlord cover to consumers in cyclone-prone areas of northern Queensland and WA as a result of its entry into the government-backed reinsurance pool scheme.

The company says its widened insurance offering includes more than 100 new postcode areas, extending to major towns and cities such as Cairns, Townsville and Mackay in Queensland and Broome and Karratha in WA.

Allianz is the first major insurer to join the Cyclone Reinsurance Pool (CRP), set up by the Federal Government last year to improve the affordability and availability of cover in the north.

Large insurers have until the end of this year to join, while smaller companies have a further 12 months to participate in the scheme, operated by the Australian Reinsurance Pool Corporation (ARPC).

“Participation in the CRP has enabled us to expand the sale of household insurance directly to customers in northern Queensland and WA, and inject more competition into those markets,” Allianz Australia MD Richard Feledy said today.

“Allianz has put in place an accelerated program of work to transfer our householders portfolio to the CRP as soon as possible and looks forward to extending the benefits of the CRP to our small business and residential strata portfolios in the future.”

Renewal notices for existing policyholders with premiums that reflect the impact of the CRP started being sent to customers from mid-November for policy periods that began from January 1.

Allianz says its analysis of the potential impact of the pool for home insurance customers is broadly consistent with modelling undertaken by the ARPC.

“We believe that the accessibility and affordability of insurance is critically important,” Mr Feledy said. “Given the increasing severity and/or frequency of extreme weather, coupled with rising inflation, the need for premium relief in communities exposed to cyclones and associated flooding is timely.”

Allianz says the pool needs to be complemented by other measures to help mitigate against and adapt to the risk of cyclones and flooding, and the insurer has welcomed the $200 million a year spending the Federal Government has announced through the Disaster Ready Fund.

“We also look forward to continuing to engage with the Government through the recently established Hazard Insurance Partnership and other avenues,” Mr Feledy said.

The ARPC pool, which has a $10 billion government guarantee, will cover eligible claims for cyclone and cyclone-related flood damage from the time a cyclone begins until 48 hours after it ends, as notified by the Bureau of Meteorology.

Source link