New ARPC analysis reveals insurance participation patterns across cyclone-exposed communities

New ARPC analysis reveals insurance participation patterns across cyclone-exposed communities

12 August 2026

Australian Reinsurance Pool Corporation (ARPC) has released new analysis of insurance participation across Australia's cyclone-exposed regions, providing new insights into where insurance and flood cover participation gaps exist and the communities most affected by them.

Drawing on industry-wide insurer data collected through the Cyclone Reinsurance Pool and combined with address, census and land title information, the analysis provides a detailed view of insurance participation across cyclone-exposed communities as at 31 December 2024. It examines how participation varies across regions, hazard exposure and household characteristics.

The analysis found that while Home Buildings insurance participation remains high across cyclone-exposed regions at 91 per cent, Home Contents insurance participation is significantly lower at 62 per cent.

Insurance participation is not evenly distributed across communities. Lower levels of take-up are generally observed in areas with higher natural hazard exposure, lower socio-economic capacity, greater remoteness and higher proportions of renters.

The largest participation gaps occur in communities facing both high hazard exposure and lower socio-economic capacity, highlighting the complex challenges facing some of Australia's most cyclone-exposed communities.

Insurance coverage across cyclone-exposed regions in Australia

The report also examines flood insurance participation. Among properties exposed to flood risk, 65 per cent hold flood cover for Home Buildings and 42 per cent for Home Contents. Participation in flood cover declines as flood risk increases, falling to 33 per cent for Home Buildings and 23 per cent for Home Contents in areas of extreme flood risk.

ARPC Chief Executive Officer, Dr Christopher Wallace, said the analysis provides an important evidence base for understanding insurance participation across cyclone-exposed communities.

"Insurance plays an important role in supporting recovery after natural disasters. This analysis provides a clearer picture of where insurance participation and coverage gaps exist across Australia's cyclone-exposed regions and contributes valuable evidence to discussions about resilience, recovery and insurance accessibility," Dr Wallace said.

"While participation remains strong overall, the report shows that it is not evenly distributed. Understanding where participation is lower, and the factors associated with it, helps identify where resilience challenges may be more pronounced."

"The report also provides information on flood insurance participation. It shows that participation in flood cover generally declines as flood risk increases, highlighting the complexity of insurance coverage in communities facing the highest levels of risk."

The report establishes a baseline for monitoring insurance participation across cyclone-exposed communities over time. The report is descriptive in nature and is intended to support public understanding of insurance participation. It does not assess the effectiveness of government policy settings, evaluate market outcomes or make policy recommendations.

About the analysis

The report examines insurance participation across cyclone-exposed regions covered by ARPC's Cyclone Reinsurance Pool, including Queensland, Western Australia, the Northern Territory and northern New South Wales.

The findings are based on ARPC's Pool-Eligible Market dataset as at 31 December 2024, to estimate insurance participation across eligible residential properties.

Further information on the methodology, assumptions and limitations is available in the report.

Download Insurance Take up and Coverage Gaps in Cyclone Exposed Regions Report

Key definitions

• Insurance take up: The proportion of eligible dwellings that hold an active insurance policy.
• Flood insurance take up: The proportion of eligible dwellings that hold an active insurance policy that includes flood cover.

For media inquiries, please contact Alexander Drake, Head of Public Affairs and Communications on (02) 8223-6777 or [email protected].