CYCLONE POOL TO INTRODUCE STRATA MITIGATION DISCOUNTS

Cyclone pool premium pricing will include strata mitigation discounts from next April following feedback obtained during a consultation.

“Insurers and the public submitted general statements of support for the proposed introduction of strata mitigation discounts,” the Australian Reinsurance Pool Corporation says in a summary. 

Requirements for the discounts, which cover areas such as roofing, gutters, and window and door protections, have been refined after feedback suggesting some of the criteria are difficult to interpret. 

“There is a trade-off in designing the discounts between making sure that any mitigation work completed is done to a standard that meaningfully reduces risk but also is clear to policyholders,” the summary says. 

“ARPC has worked with James Cook University to make the criteria more clear and align with existing government risk mitigation programs.” 

The pool pricing review found current premium rates are achieving overall adequacy while delivering the most benefit to medium- and high-risk properties, as intended by the scheme legislation. 

“The changes to the premium algorithm to strata buildings introduced at this review are expected to incentivise mitigation,” the ARPC says.  The changes, from April 1, will update arrangements that took effect in October 2022.

Article Contribute by insuranceNEWS.com.au