Cyclone Insurance Savings Offer Relief, But Farmers Still Face a Hard Market

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.