The Australian Reinsurance Pool Corporation (ARPC) has backed the final report of the Northern Australia Insurance Premiums Taskforce and its focus on mitigation over intervention.

However, the corporation says it stands ready to assist in setting up a cyclone reinsurance pool, should that option be required.

CEO Chris Wallace says the taskforce findings are consistent with the ARPC’s submission, which “did not advocate for or against” a government-backed pool.

“Our submission emphasised that losses to government would be expected to occur frequently, that a pool would not be self-funding for several years and… a proportion of any scheme needed to be allocated to community risk mitigation initiatives,” he said.

“However, our submission did note that a viable pool already existed for terrorism catastrophe and that should the Government resolve to establish a pool, the ARPC had the skills and systems to implement this.”

The ARPC’s existing infrastructure would make implementation “relatively straightforward”.

“We stand ready to work with government and the insurance industry to extend our capability to other types of catastrophes if we are required to do so,” Dr Wallace said.

The Government will give a detailed response to the taskforce report in the coming months.