FINAL ACCC INSURANCE MONITORING REPORT SIGNALS POSITIVE IMPACT FOR QUEENSLAND STRATA 

The Australian Competition and Consumer Commission (ACCC) has released its fifth and final monitoring report on the Cyclone Reinsurance Pool, concluding its formal role in monitoring the scheme’s impact.

The Australian Government established the cyclone reinsurance pool in 2022 to reduce the cost of reinsurance for cyclone risk and help make insurance more affordable for households and some small businesses in areas at higher risk of cyclones. The pool, which is administered by the Australian Reinsurance Pool Corporation, provides reinsurance for cyclone and cyclone-related flood risks covered under home, contents, strata and small business insurance (for sums insured up to $5 million) across Australia.

The report provides encouraging news for Queensland’s strata sector, finding that in the first year after insurers joined the pool, average strata insurance premiums (per $100,000 sum insured) fell by 8% in higher cyclone-risk areas, while premiums in areas with no cyclone risk increased by 2%.

Commenting on the findings, ACCC Commissioner Anna Brakey said:

“We also found evidence of reductions for strata and small business policyholders in cities at higher cyclone risk, with some particularly sharp decreases for those paying the highest premiums.”

The report also found that premium reductions in higher cyclone-risk areas have been sustained over time. However, it acknowledges that increasing claims costs, inflation and more frequent extreme weather events continue to place upward pressure on insurance premiums across Australia, meaning affordability remains a significant challenge for many communities.

Today’s report concludes the ACCC’s monitoring role, having published five reports since 2022 to assess whether the pool was achieving its intended outcomes and providing greater transparency around how savings from reduced reinsurance costs have been passed on to policyholders.

Summary: While these findings demonstrate the Cyclone Reinsurance Pool has delivered measurable benefits for many strata communities in higher-risk regions, insurance affordability remains one of the most significant challenges facing Queensland’s strata sector. 

Members can access the ACCC’s final monitoring report and supporting data via the ACCC website.

SCAQ’s reflection: SCAQ will continue to advocate for practical reforms that improve insurance affordability, encourage greater insurer participation in the strata market, and recognise mitigation investments made by bodies corporate.

Laura Bos, General Manager at Strata Community Association Queensland.

Prepared by the Strata Community Association (Queensland) following the ACCC’s fifth and final Insurance Monitoring Report. Figures are drawn from the official 2026 Insurance Monitoring Report and should be read alongside the official publication at ACCC.gov.au.