Canberra shields insurance companies from cyclone losses
The Australian Cyclone Reinsurance Pool covers insurers for damage when weather is classified as a cyclone – and for 48 hours from the time it is downgraded.
With their disaster response teams ready to answer calls for help as customers are battered by Cyclone Alfred, there’s a definition every insurance company will be sweating on.
Under the federal government’s cyclone reinsurance pool, commercial insurers are protected by the Commonwealth balance sheet for damage that occurs when a weather system is officially classified as a cyclone – and for 48 hours from the time it is downgraded by the Bureau of Meteorology.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
