Cyclone reinsurance pool claim payments have exceeded $1 billion since the scheme launched almost four years ago to help reduce premium costs in higher-risk areas.

The Australian Reinsurance Pool Corporation says Cyclone Alfred in Queensland last year accounted for a significant proportion of the total, which comprises 20 declared events.

CEO Christopher Wallace says the payment milestone shows the pool is delivering timely, reliable support following severe cyclones.

“From our first declared event, with Tropical Cyclone Gabrielle impacting Norfolk Island in 2023, the cyclone pool has scaled rapidly,” he said.

“It has demonstrated its capability to support insurers through multiple events while maintaining operational integrity and financial strength.”

The total reflects claims submitted for reimbursement by insurers up to December 31, so does not include Cyclone Narelle, which hit Queensland, the NT and WA last month.

Dr Wallace says as the scheme continues to mature, the ARPC will focus on enhancing operational efficiency, maintaining responsive claims processes and supporting targeted mitigation to improve the long-term risk profiles of properties in exposed regions.

The pool, backed by a $10 billion government guarantee, began operating on July 1 2022. It covers insurance claims for cyclone and related flood damage to homes, strata units and small businesses from the time the Bureau of Meteorology declares a cyclone through to 48 hours after it ends.

Last year, Treasury began a scheduled review of the Terrorism and Cyclone Insurance Act. Submissions closed on November 11.