The Australian Reinsurance Pool Corporation (ARPC) hopes to expand its role to address “concerning” gaps in coverage.

The pool was set up when the private market withdrew terrorism cover after the September 11 2001 attacks on the US.

A recent Audit Commission report suggested abolishing the scheme, and a Treasury review of the pool’s future is pending.

But the ARPC’s latest strategic plan outlines ambitions for expansion.

CEO Christopher Wallace told insuranceNEWS.com.au “notable risks”, including high-rise residential and mixed-use residential and commercial, are not covered under the scheme.

The gaps should be addressed, he says.

“We cannot cover [those risks] under the legislation as it currently stands. This would be a small increase in the scheme but an important one.”

Dr Wallace says the proposals may be considered under the Treasury review, due to take place in the next three to four months.

The strategic plan also sets out a long-term aim for the ARPC to become a “trusted adviser” on terrorism reinsurance, and targets better communication with stakeholders.

“We are trying to be out in the market more,” Dr Wallace said. “This strategic plan is not a change of direction, but it is a change of focus.”

The recent budget included an announcement that the ARPC will pay the Government $450 million over four years in return for the $10 billion Commonwealth guarantee.

This replaces current dividends to the Government, which have been cancelled, returning $143.9 million to the pool and increasing its net assets to $573 million.

“We are now in a stronger financial position,” Dr Wallace said. “The changes are positive for the ARPC.”