Most respondents to a survey continue to see the Australian Reinsurance Pool Corporation (ARPC) as a trusted expert on terrorism reinsurance (86%), easy to deal with (86%) and transparent (85%).
These are the results of the latest insurer customer survey commissioned by ARPC and conducted during November-December 2022.
Terrorism pool
The Terrorism Pool Stakeholder Perceptions Index (T-SPI) achieved 75%, which is a favourable perception of ARPC overall, although slightly lower than the previous year (80%). The T-SPI was derived from three questions: To what extent do you feel ARPC is an effective provider of terrorism risk insurance? To what extent do you believe ARPC supports your organisation’s financial strength? To what extent do you feel ARPC is a valued partner to your organisation?
Respondents continued to rate ARPC’s website, digital business-to-business communications, publications and annual Terrorism Risk and Insurance Seminar strongly, with 99% of respondents overall (Australia and overseas) rating them as very good or valuable.
Eighty percent overall found the ARPC terrorism insurer customer review process very or somewhat useful.
When asked to describe ARPC in two keywords, both Australian and overseas respondents used positive words such as “effective” and “accommodating”, closely followed by “partner” and “reliable”.
A much lower proportion (38%) of terrorism insurer customers felt that ARPC supported their organisation’s financial strength to a large or moderate extent (down from 67% in 2021).
Cyclone pool
On the new cyclone reinsurance pool, 88% of respondents (Australia only) felt information proactively provided by ARPC was very good or good.
Areas for improvement
The response rate for the survey is in gradual decline. The overall response rate for the 2022 survey was 18% compared to 22% in 2021 and 28% in 2020. In 2023, the survey will be adjusted to include additional focus on the cyclone reinsurance pool and include short in-person interviews aimed at increasing survey participation.
In response to the survey results, ARPC chief executive Dr Christopher Wallace said, “ARPC remains committed to its annual insurer customer survey to collect feedback and learn how we can better serve our insurer customers. This will be particularly important as the cyclone pool grows by 31 December 2023.”
Methodology
The ARPC/ORIMA Insurer Customer Survey is part of an annual process that seeks to understand how customers perceive ARPC and measure the effectiveness of its stakeholder engagement activities. A short online survey was first run in November 2020, with the most recent survey conducted in November-December 2022. A small number of questions about the cyclone pool were included for the first time in 2022.
ARPC is a public financial corporation that operates a terrorism reinsurance pool that provides insurance cover for eligible terrorism losses and operates a cyclone reinsurance pool that provides insurance cover for cyclone and cyclone-related flood damage to houses, small businesses, and strata.
