2018 TRIENNIAL REVIEW
Given global market uncertainty at the time of ARPC’s establishment, a requirement was written into the TI Act that the Minister provide a report every three years reviewing the need for the TI Act to continue. Under the terms of reference for each review, the Treasury was to seek submissions from, and consult widely with, ARPC’s key stakeholders.
To date, there have been five reviews undertaken and published, each examining the operation of the TI Act in the context of contemporary market trends and how governments of other countries have responded to this market failure.
In December 2018, the Treasury published the 2018 Triennial Review. The review made the following recommendations and findings:
- That the Act remains in force.
- That ARPC pay an additional temporary dividend of $10 million a year for three years commencing in 2018-19 and terminating in 2020-21, with the Government to consider the appropriate level of payments when this dividend ceases.
- The current structure of pricing for the range of risks currently covered by the Act and the approach to declaring a terrorism incident remains appropriate.
- Cyber terrorism is an emerging risk and there is yet to be a clear and evident market failure in relation to physical property damage from cyber terrorism requiring government intervention through the Act at this time.
- Coverage is broad for domestic terrorism causing death or serious injury to Australians. There is an array of government schemes under which they could claim some form of compensation or funding, depending on their circumstances. There are also widely available insurance products that do not contain exclusions for terrorism incidents.
The 2021 Review of Act will be conducted by Treasury during 2020/21 and is due to be presented to the Minister by 31 December 2021.