Statistics
Active insurer customers’ reinsurance agreements
ARPC’s active reinsurance agreements (or treaties) with insurer customers increased to 227 in 2019-20, compared to 220 in 2018/19.
The percentage split between each of the categories is illustrated in Figure: Active client reinsurance agreements* below:
The following tables show that GWP by tier, state and business class (between 2016 and 2020) has remained stable, with most exposure observed in Tier B, followed by Tier C.
Actual | |||||
|---|---|---|---|---|---|
2019-20 % | 2018-19 % | 2017-18 % | 2016-17 % | 2015-16 % | |
Tier A | 21% | 20% | 21% | 19% | 19% |
Tier B | 59% | 59% | 56% | 57% | 56% |
Tier C | 20% | 21% | 23% | 24% | 25% |
Total GWP $’000 | 233,063* | 201,879 | 181,766 | 159,945 | 130,490 |
* Note that the premium revenue for the 2019-20 underwriting year of $233 million is the amount reported as at 8 August 2020
Actual | |||||
|---|---|---|---|---|---|
2019-20 % | 2018-19 % | 2017-18 % | 2016-17 % | 2015-16 % | |
NSW | 32% | 32% | 32% | 31% | 32% |
VIC | 25% | 25% | 25% | 25% | 24% |
QLD | 21% | 21% | 21% | 20% | 21% |
WA | 12% | 12% | 12% | 14% | 13% |
SA | 7% | 7% | 7% | 7% | 7% |
TAS | 1% | 1% | 1% | 1% | 1% |
NT | 1% | 1% | 1% | 1% | 1% |
ACT | 1% | 1% | 1% | 1% | 1% |
Total GWP $’000 | 233,063* | 201,879 | 181,766 | 159,945 | 130,490 |
Cumulative total $’000 | 2,199,661 | 1,966,598 | 1,764,719 | 1,582,953 | 1,423,008 |
* Note that the premium revenue for the 2019-20 underwriting year of $233 million is the amount reported as at 8 August 2020
Actual | |||||
|---|---|---|---|---|---|
2019-20 % | 2018-19 % | 2017-18 % | 2016-17 % | 2015-16 % | |
Fire/ISR/BI | 87% | 86% | 85% | 85% | 84% |
Contract Works | 6% | 7% | 8% | 6% | 7% |
Burglary | 2% | 3% | 3% | 4% | 4% |
Miscellaneous Accident | 0% | 1% | 1% | 2% | 2% |
Mobile Plant | 4% | 2% | 2% | 2% | 2% |
Glass | 1% | 1% | 1% | 1% | 1% |
Farm | 0% | 0% | 0% | 0% | 0% |
Total GWP $’000 | 233,063* | 201,879 | 181,766 | 159,945 | 130,490 |
Cumulative total $’000 | 2,199,661 | 1,966,598 | 1,764,719 | 1,582,953 | 1,423,008 |
* Note that the premium revenue for the 2019-20 underwriting year of $233 million is the amount reported as at 8 August 2020
Insurance premium report
Insurance risk report by underwriting year* (as at 8 August 2020) shows that the annual change in ARPC premium revenue is directly related to changes in insurer customer premium rates, aggregate sum insured and ARPC premium rates. The overall growth is indicative of the market change in premiums for commercial risks over time, while the increase in premium as a percentage of insurer customer GWP shows the impact of the ARPC rate change implemented by Ministerial Direction in early 2016.
Underwriting | ARPC premium revenue | Insurer customer sum insured | Insurer customer GWP | ARPC |
|---|---|---|---|---|
2011-12 | 124.7 | 3,080,062 | 3,516.6 | 3.5% |
2012-13 | 129.8 | 3,009,662 | 3,710.1 | 3.5% |
2013-14 | 126.6 | 3,114,901 | 3,608.6 | 3.5% |
2014-15 | 128.5 | 3,425,056 | 3,660.4 | 3.5% |
2015-16 | 130.5 | 3,593,017 | 3,500.6 | 3.7% |
2016-17 | 159.9 | 3,681,649 | 3,419.3 | 4.7% |
2017-18 | 181.8 | 3,464,734 | 3,764.4 | 4.8% |
2018-19 | 202.2 | 3,711,900 | 4,142.4 | 4.9% |
2019-20 | 233.1* | ** | 4,718.1 | 4.9% |
* The premium revenue for the 2019-20 underwriting year of $233 million is the amount to 30 June 2019 as at 8 August 2020
** The 2019-20 risk reports are submitted into RISe from July 2020 until September 2020. Therefore this information is not available as at 30 June 2020
Insurance risk report for the 2018-2019 by tier (as at 30 June 2019) shows the breakdown of premium income and sum insured by tier, indicating that ARPC’s exposure is mostly located within Tier B, followed by Tier C. This is consistent with ARPC’s portfolio being mainly ‘business package’ risks located in suburban areas followed by ISR policies covering major infrastructure in rural areas.
Tier | ARPC premium revenue | Insurer customer sum insured | Insurer customer GWP | ARPC |
|---|---|---|---|---|
A | 40.5 | 456,435 | 253.2 | 16.0% |
B | 119.1 | 2,006,269 | 2,248.2 | 5.3% |
C | 42.6 | 1,249,196 | 1,641.0 | 2.6% |
Aggregated | 202.2 | 3,711,900 | 4,142.4 | 4.9% |
Insurance risk report for the 2018-2019 by state (as at 30 June 2019) indicates that the vast majority of ARPC’s exposure is in New South Wales, Victoria and Queensland. Much of the premium income is derived from NSW, followed by Victoria, owing to the higher volume of risks located in Tier B.
State | ARPC premium revenue | Insurer customer sum insured | Insurer customer GWP | ARPC |
|---|---|---|---|---|
NSW | 63.6 | 1,229,247 | 1,232.4 | 5.2% |
VIC | 49.8 | 784,913 | 918.1 | 5.4% |
QLD | 42.1 | 806,702 | 940.4 | 4.5% |
WA | 24.5 | 502,638 | 563.9 | 4.3% |
SA | 14.2 | 212,107 | 272.4 | 5.2% |
NT | 2.9 | 52,089 | 87.0 | 3.3% |
TAS | 2.8 | 67,454 | 80.9 | 3.5% |
ACT | 2.3 | 56,750 | 47.3 | 4.9% |
Aggregated | 202.2 | 3,711,900 | 4,142.4 | 4.9% |
Aggregate sum insured reports
ARPC’s reinsurance agreement requires each insurer customer to provide an annual aggregate sum insured report by 31 August each year. The report summarises the aggregate sums insured amounts at postcode level for all postcodes and at street address level for the five main central business district Tier A locations as at 30 June. The information is uploaded by insurer customers directly into ARPC’s RISe system, which enables ARPC to analyse the distribution of exposure risk across Australia. The analysis includes the ability to report aggregate sum insured exposures.
Table: Aggregate sum insured amounts by tier, Figure: Percentage of aggregate sum insured held by tier 2019-2020 and Table:Aggregate sum insured by tier 2018-2019 provide an overview of ARPC's total exposure based on information provided by insurer customers as at 30 June 2019.
Tier | 2018-19 $ trillion | 2017-18 | 2016-17 | 2015-16 | 2014-15 |
|---|---|---|---|---|---|
A | 0.5 | 0.4 | 0.4 | 0.4 | 0.4 |
B | 2.0 | 1.9 | 2.0 | 1.9 | 1.8 |
C | 1.2 | 1.2 | 1.3 | 1.3 | 1.2 |
Total aggregate sum insured $ trillion | 3.7 | 3.5 | 3.7 | 3.6 | 3.4 |
2018-19 | Tier A | Tier B | Tier C |
|---|---|---|---|
Spread: | 12% | 54% | 34% |
$456 billion | $2,006 billion | $1,249 billion |
The exposure report by state allows ARPC to identify the correlation between state exposures and collected premiums and the relative size of assets in each state.
Visit
https://www.transparency.gov.au/annual-reports/australian-reinsurance-pool-corporation/reporting-year/2019-20-15