Magazine date:
Mar 2011 The government is considering the establishment of a reinsurance pool covering natural catastrophes. Insurers will have access to it through the payment of a contribution equal to a portion of their premiums. The country is subject to various natural catastrophes including floods, earthquakes or wildfires. According to the Lloyd's, Australia accounts for 3% of the global premiums and 5% of the global catastrophes.
Given the small population, the development of a pool covering these events remains a major challenge. The pool would allow the authorities to focus on preventive measures instead of making decisions such as the temporary steps taken during the recent catastrophes. Compensation would also be faster.