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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:

Active client reinsurance agreements* Active client reinsurance agreements*
*as at 30 June 2020
​The Gross Written Premium (GWP) trend reported by insurer customers is measured by insurer customer type, premium by tier, premium by state and premium by business class. Figure: ARPC gross written premium by insurer illustrates the GWP by insurer customer type.​

ARPC gross written premium by insurer ARPC gross written premium by insurer

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.

ARPC gross written premium by tier

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

ARPC gross written premium by state

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

ARPC gross written premium by business class

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.

Insurance risk report by underwriting year* (as at 8 August 2020)

Underwriting
year

ARPC premium revenue
($ million)

Insurer customer sum insured
($ million)

Insurer customer GWP
($ million)

ARPC
premium as
% of GWP

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.

Insurance risk report for the 2018-2019 by tier (as at 30 June 2019)

Tier

ARPC premium revenue
($ million)

Insurer customer sum insured
($ million)

Insurer customer GWP
($ million)

ARPC
premium as
% of GWP

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.

Insurance risk report for the 2018-2019 by state (as at 30 June 2019)

State

ARPC premium revenue
($ million)

Insurer customer sum insured
($ million)

Insurer customer GWP
($ million)

ARPC
premium as
% of GWP

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.

Aggregate sum insured amounts by tier

Tier

2018-19 $ trillion

2017-18
$ trillion

2016-17
$ trillion

2015-16
$ trillion

2014-15
$ trillion

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

Percentage of aggregate sum insured held by tier 2019-2020 Percentage of aggregate sum insured held by tier 2019-2020

Aggregate sum insured by tier 2018-2019

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.

Percentage of aggregate sum insured held by state 2018-2019 Percentage of aggregate sum insured held by state 2018-2019