A report on the future of the Australian Reinsurance Pool Corporation (ARPC) will be delivered to Treasurer Joe Hockey by January 23.

It will examine whether the private sector could supply terrorism insurance and will consider alternative ARPC ownership options, according to the terms of reference.

Scheme pricing, retentions, retrocession levels and costs will be reviewed, to check they are appropriate and do not distort insurance demand.

Other issues include the possible inclusion of mixed commercial and residential buildings and high-rise apartment blocks in the scheme, and whether refinements are needed to clarify biochemical attack coverage, given insurance policy exclusion clauses.

Treasury has appointed external consultant Pottinger to help with the review and will seek submissions from insurers, reinsurers, brokers, industry groups, state and territory governments and agencies including the ARPC.

As insuranceNEWS.com.au has previously reported, the industry is opposed to the closing of the ARPC, despite higher levels of reinsurance capacity available at present.