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Reinsurance pool announcement ‘imminent’

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A cyclone reinsurance pool for northern Australia is expected to be announced by the Federal Government within days, insuranceNEWS.com.au understands.

Queensland media reports point to a pre-Budget announcement this week, rather than on the day of the Budget itself, scheduled for Tuesday next week.

The Government could commit to a pool, but leave the finer details of coverage and funding up for further investigation and consultation.

insuranceNEWS.com.au reported last month that Queensland MPs are increasingly confident that a pool will be announced.

A recent Australian Small Business and Family Enterprise Ombudsman insurance inquiry, which also looked at liability cover problems, recommended the Australian Reinsurance Pool Corporation mandate be extended beyond terrorism to include natural disasters.

But the Australian Competition and Consumer Commission three-year inquiry into northern insurance issues recommended against a reinsurance pool and said there was no market failure.