The Australian Reinsurance Pool Corporation (ARPC) is a government-backed reinsurer covering cyclone and cyclone-related flood damage. CHU, Australia’s leading specialist in strata insurance, joined the ARPC Cyclone Reinsurance Pool in July 2023 for customers who have Residential, Commercial, and Build-to-Rent policies to help strata property owners access affordable and appropriate coverage in cyclone affected regions.
From 1 April 2025, the ARPC is introducing new discounts for eligible strata properties that are part of the ARPC Cyclone Reinsurance Pool. These changes present an opportunity for Queensland strata owners to benefit from potential cost reductions on their insurance policies.
Why are these changes happening?
In 2024, the ARPC partnered with James Cook University’s Cyclone Testing Station to identify ways to improve building resilience and offer premium reductions for eligible strata properties. Their research found that the main causes of cyclone-related building damage include:
- Wind-driven rain – Water ingress through windows, doors, gutters, eaves, and vents, contributing to 70% of strata claims.
- Wind load damage – Structural damage caused by pressure changes when a building envelope is breached.
How to access these discounts if your property is eligible?
To help strata owners check if they are eligible for these new discounts, CHU has introduced five new underwriting questions to determine eligibility. If your client’s property is eligible, these questions can now be answered by the insurance broker or strata manager within CHU’s StrataTech platform. If the information is missing, it will be marked as ‘Unknown’ by default. If your policy is ineligible for the discounts, you will not see these questions.
Key factors that may affect eligibility:
- Year of construction
- Building height (number of storeys)
- Type of roof and external doors
- Presence of cyclone-rated shutters or screens
- Compliance of garage doors and gutters with building codes
Why might some buildings not qualify?
If a building does not qualify to receive an additional discount, it may already benefit from a reduced cyclone premium due to its building characteristics. For example:
- Buildings may not qualify because they were built to higher construction standards and have already been provided relief upfront for the cyclone premium applicable to the building.
- If a property is outside of a designated cyclone-prone area, it may not be eligible for ARPC-related discounts.
What if my building has undergone mitigation work?
If your building has undergone mitigation works but does not qualify for a discount, CHU may still be able to assist. Contact CHU’s underwriting team on 1300 361 263 to speak to an Underwriter about your individual circumstances.
To learn more about these upcoming changes visit chu.com.au [BS1]
Reach out to CHU or your CHU BDM if[BS2] you have any questions about coverage or discount eligibility.
This article was supplied by CHU Underwriting Agencies
CHU Underwriting Agencies Pty Ltd (ABN 18 001 580 070, AFS Licence No: 243261) acts under a binding authority as agent of the insurer QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFS Licence No: 239545). Terms, conditions, limits and exclusions apply to the products referred to above. Any advice is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Before making a decision to acquire any product(s) or to continue to hold any product we recommend that you consider whether it is appropriate for your circumstances and read the relevant Product Disclosure Statement (‘PDS’), Financial Services Guide (‘FSG’), and the Target Market Determination (‘TMD’) which can be viewed on this website or obtained by contacting CHU directly on 1300 361 263.
[BS1]Link to https://chu.com.au/news/key-arpc-updates-from-1st-april-2025/
[BS2]Link to CHU contact us page.