Cyclone Insurance Savings Offer Relief, But Farmers Still Face a Hard Market
What the ACCC’s final monitoring report means for rural property owners in cyclone-prone regions
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The ACCC’s final monitoring report on the Australian Government’s cyclone reinsurance pool offers a cautiously positive signal for parts of northern Australia.
Premium relief is showing up in higher cyclone-risk areas, particularly for home, strata and small business policies.
For farming families and rural enterprises in exposed regions, that matters: the family home, workers’ accommodation, sheds, workshops and business premises can all sit within the same weather-risk landscape.
The report found that, in the first year after insurers joined the pool, average premiums per $100,000 sum insured fell by 11 per cent for home insurance, 8 per cent for strata and 24 per cent for small business insurance in higher cyclone-risk areas. After up to two years, the reductions were deeper for some categories, with home premiums down 14 per cent and small business premiums down 31 per cent compared with pre-pool pricing.
However, the relief is not a full reset. The ACCC also made clear that affordability pressure remains severe. Extreme weather claims, construction cost inflation and broader market conditions are still pushing premiums higher across Australia. In 2024-25, average home and contents premiums remained especially high in northern Western Australia, the Northern Territory and north Queensland, while premiums outside cyclone-prone areas also continued to rise.
For farm operators, the practical message is to avoid assuming that one premium movement tells the whole story. The cyclone pool is designed around cyclone and cyclone-related flood reinsurance for eligible home, contents, strata and small business risks. It does not solve every exposure on a rural property, nor does it replace the need to review farm insurance cover across buildings, machinery, liability, livestock, crops, fencing and business interruption.
Check whether cyclone and storm-related flood terms are clearly reflected in your property and business policies.
Review sums insured against current rebuild, repair and replacement costs.
Keep evidence of mitigation work, such as roof upgrades, drainage, tie-downs, clearing and maintenance.
Ask how mitigation is recognised in underwriting, excesses or premium calculations.
The report also highlights a wider market issue: some insurers are recognising private mitigation measures, but the information provided to customers is not always consistent. This is where experienced farm insurance brokers can help translate policy wording, identify gaps and compare how different insurers treat rural cyclone risk.
This story extends the broader affordability debate already affecting many rural communities. Premium relief in high-risk cyclone zones is welcome, but farmers still need a disciplined annual review, accurate asset valuations and a clear understanding of what is and is not covered before the next severe weather season arrives.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
A recent Australian Financial Complaints Authority decision is a timely reminder for tradies that the words in a policy schedule can matter just as much as the headline sum insured. The dispute involved a business that had tools and a trailer stolen from a worksite, then challenged the insurer’s payout after receiving far less than it believed the policy should provide. - read more
A recent Full Federal Court decision involving HCF Life has put renewed attention on one of the most important parts of any life insurance policy: how pre-existing conditions are described, limited and explained to customers. - read more
The ACCC’s final monitoring report on the Australian Government’s cyclone reinsurance pool offers a cautiously positive signal for parts of northern Australia. Premium relief is showing up in higher cyclone-risk areas, particularly for home, strata and small business policies. For farming families and rural enterprises in exposed regions, that matters: the family home, workers’ accommodation, sheds, workshops and business premises can all sit within the same weather-risk landscape. - read more
Haven Underwriting has expanded its product suite with a new broadform liability offering, adding another option for Australian businesses that rely on customer-facing premises, physical locations and day-to-day public interaction. The cover is backed by Mitsui Sumitomo Insurance capacity and follows Haven’s earlier entry into the market with industrial special risk property cover. - read more
Vero has entered the residential strata market with a new nil-commission product, initially launching in Far North Queensland and Darwin before a planned national rollout. The move is significant for owners corporations, strata committees and managers because these northern regions are among the most challenging areas in which to secure affordable and suitable building cover. - read more
Delta Insurance’s move onto Ebix Australia’s Sunrise Exchange is more than a technology update. For Australian small businesses, including domestic and home service operators, it points to a broader shift in how specialist insurance products are being accessed, compared and placed through the broker market. - read more
Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Waiting Period: The time period that must pass after filing a claim before the insurance coverage becomes effective or benefits are paid.
No comments yet. Be the first to share your thoughts.