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ACCC insurance monitoring role
The ACCC’s role to monitor insurance prices, costs and profits before and after the introduction of the cyclone reinsurance pool concluded on 30 June 2026.
In 2022, the ACCC was directed by the government to monitor the prices, costs, and profits of home, contents, strata and some small business insurance products, before and after the introduction of the cyclone reinsurance pool.
We collected data and information from insurers to evaluate the impact of the cyclone reinsurance pool and assess whether savings are being passed through to policyholders.
We were required to provide a report on our monitoring at least once each calendar year from 1 January 2022 to 30 June 2026.
See the terms of reference at Competition and Consumer (Price Monitoring—General Insurance Policies) Direction 2022.
Monitoring reports
Five reports were published under the direction.
About the cyclone reinsurance pool
The government created a cyclone and related flood damage reinsurance pool.
The pool provides reinsurance to insurers for cyclones and cyclone-related flooding risks throughout Australia. It applies to home, contents, residential strata and small business insurance cover, up to an insured sum of $5 million.
The pool seeks to reduce the cost of reinsurance for insurers to:
- enable delivery of lower premiums to consumers
- promote competition by encouraging more insurers to participate in northern Australian, and other cyclone-risk, regions.
The pool was started to help make insurance more affordable for households and some small businesses who are at high risk of cyclones.
The Australian Reinsurance Pool Corporation administers the reinsurance pool and supplies reinsurance to insurers. Reinsurance is priced at the property level and is designed to direct greater savings towards higher cyclone risk properties. The Australian Reinsurance Pool Corporation does not operate for profit.
Large insurers were required to join the pool by 31 December 2023 and small insurers were required to join by 31 December 2024. The list of insurers covered by the cyclone pool is on the Australian Reinsurance Pool Corporation website.
The legal basis of our work
The ACCC functions in relation to price inquiries and price monitoring were set out in part VIIA of the Competition and Consumer Act 2010.