The Australian Reinsurance Pool Corporation (ARPC) will extend its terrorism blast modelling to Brisbane and Adelaide over the next year.

The 3D model project has so far focused on Sydney and Melbourne city centres, allowing the corporation to test its ability to cover potential losses.

“Modelling demonstrates that if a loss was to occur in the Sydney or Melbourne CBDs from a large blast, the ARPC’s pool of funds plus the retrocession program would cover almost all probable events,” it says in its quarterly newsletter.

The project also assists the corporation in talks and negotiations with the Government and the reinsurance industry on loss scenarios.

The ARPC says it received premiums of $132.1 million last year, while its insurer customers reported $3 trillion in sums insured and collected $3.7 billion in gross written premium.

A steady increase in the customer sum insured since 2009 reflects economic growth, plus some new groups reinsuring with the corporation, it says.

The ARPC was founded to provide terrorism cover when the private market withdrew after the September 11 2001 attacks on the US.

A recent Audit Commission report recommended its abolition, citing a recovery in the reinsurance market.

But Chairman Joan Fitzpatrick says the pool “continues to address significant market failure in the reinsurance industry for the provision of cost-effective terrorism insurance cover”.