The Australian Reinsurance Pool Corporation has reduced its terrorism retrocession program for this year, partly reflecting risk assessment changes.

It has a limit of $2.15 billion and a retention of $350 million, compared with a previous limit of $3.48 billion and retention of $225 million. The corporation reduced its retrocession spending by 18%.

“ARPC’s retrocession program includes Australian and international reinsurer participants, which together provide terrorism cover for Australian-based property assets,” corporation CEO Christopher Wallace said.

The revised view of risk follows analysis and work with experts to refine realistic scenarios.

A recent rise in attack frequency has mainly involved lone actors using unsophisticated weapons, while the risk of a large co-ordinated event causing extensive property damage remains low.

The retrocession plus ARPC’s net assets and the $10 billion Commonwealth guarantee provide about $14 billion in pool capacity.

The ARPC met with more than 40 reinsurers in key global markets to arrange the program.

The terrorism pool was established in 2003 to fill a gap in the commercial market after the September 11 2001 attacks in the US.