Australia’s state-backed cyclone pool estimates Alfred impact at A$1.7 billion

By Ryan Hewlett

March 25 - (The Insurer) - The state-backed cyclone pool in Australia expects to incur claims totalling A$1.7 billion ($1.7 billion) from ex-Tropical Cyclone Alfred, and anticipates a rise in claims in the coming weeks.

On Tuesday the Australian Reinsurance Pool Corporation (ARPC) provided its first preliminary loss estimate from Alfred, which made landfall on the Queensland coast on Saturday March 8, 2025.

Preliminary modelling conducted by ARPC, which operates the cyclone pool, has estimated that total losses covered by the Cyclone Reinsurance Pool are approximately A$1.7 billion ($1.07 billion).

ARPC noted that the estimate remains fluid and is likely to change as further assessments are conducted and more claims data becomes available.

The cyclone pool provided cover for damage that occurred between 8:30 a.m. AEST on February 28 and 6:00 a.m. AEST to March 10 (21:00 GMT February 27 to 19:00 GMT March 9). The total cyclone pool coverage period for ex-Tropical Cyclone Alfred was close to ten days.

As previously reported, ARPC has comprehensive arrangements to pay reinsurance claims to insurers for cyclone events, supported by premiums, reserves and the A$10 billion Commonwealth guarantee.

ARPC CEO Dr Christopher Wallace said: “While it will take some time to gain a clearer picture of the damage following ex-Tropical Cyclone Alfred, our teams remain ready to help insurers process claims and facilitate the recovery process.

“Our teams are well prepared to manage any eligible reinsurance claims arising from this event and ready to assist insurers with submissions, including loss estimate reports and other payments, as required.”

The cyclone pool provides cover for insurers that offer protection against cyclone and cyclone-related flood damage that occurs while a weather system is classified as a cyclone, and for 48 hours from the time that it is downgraded by the Bureau of Meteorology.

The pool is intended to be cost-neutral to the government over the long term and was launched by ARPC in 2022 under the amended Terrorism and Cyclone Insurance Act 2003.