The Australian Reinsurance Pool Corporation (ARPC) has started renewing its retrocession cover.

The ARPC currently has $2.9 billion of cover, contributing to overall reinsurance capacity of $13.4 billion, which includes the $10 billion Commonwealth guarantee.

“This is an annual process and there are 60 reinsurers participating,” CEO Chris Wallace told insuranceNEWS.com.au. “We always try to maximise capacity within our budget and hopefully we can continue to increase it.

“We might also move part of the program to a multi-year agreement.”

The ARPC has published its corporate plan, outlining its objectives over the next four years.

“There remains no whole-of-market, sustainable, alternative provider of terrorism reinsurance,” the plan says.

“The reinsurance market has insufficient capacity to offer uniform terrorism insurance coverage to the market at affordable prices, a situation that is unlikely to change during the next four years.”

Dr Wallace says work continues with Treasury to expand the scheme to include mixed-use and high-value residential buildings.