Category Archives: Blog

ARPC and the Boston Marathon

My article was written last week before the horrendous events at the Boston Marathon last Sunday.

By the time the article was posted as a blog, I asked the question to various recipients : ” In light of the horrendous events at the Boston Marathon, why would the Gillard Government assume $3 billion of terrorism risk that it doesn’t have to”.The question was designed to highlight the short term thinking of the proposal to direct the ARPC to cancel its retrocession acquisition for two years, and instead pay the equivalent premium ($75M per annum) to the Government as an additional dividend to fund flood mitigation and other government expenditures.

The question was designed to highlight the short term thinking of the proposal to direct the ARPC to cancel its retrocession acquisition for two years, and instead pay the equivalent premium ($75M per annum) to the Government as an additional dividend to fund flood mitigation and other government expenditures.

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The Australian Reinsurance Pool Corporation (ARPC)

 There are some ideas that are so absurd, George Orwell once famously said, that only an intellectual could believe them.

If reports in the Sydney Morning Herald (1 March 2013) and the AFR (11 April) are to be believed, the Government’s plan to “raid the funds” of The Australian Reinsurance Pool Corporation (ARPC), which I had the honour to chair from inception until the end of last year, is one such idea.

Let me explain why.

After 9/11, not surprisingly, it became impossible or prohibitively expensive, for the owners of commercial property to obtain insurance cover against terrorism

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