A key function of QGIF is to manage the State’s reinsurance program which includes ensuring the State’s property assets (excluding roads) are adequately covered.
QGIF, like other state government self-insurance schemes, purchases reinsurance (external insurance) from the commercial market to cover losses above certain levels, in order to minimise the financial impact associated with large or multiple losses, such as natural disasters.
QGIF’s reinsurance program is reviewed annually to ensure it is appropriate, cost-effective and provides value for money for the State. In addition to Property reinsurance, QGIF also has cover for Terrorism, General Liability and Aviation Liability, with the bulk of these policies renewed annually on 1 November.
QGIF’s Property reinsurance policy covers State assets, including bridges and tunnels but excluding roads. Having reinsurance for these assets provides confidence that significant unforeseen losses can be managed with minimal impact to the self-insurance scheme and the State Budget, while also meeting the requirements of the Natural Disaster Relief and Recovery Arrangements (NDRRA).
In 2011, following a series of natural disasters, the NDRRA Guidelines were amended to require all States and Territories (including local governments) to:
- have adequate and cost-effective insurance arrangements in place for their property assets (excluding roads) in order to access Commonwealth funding;
- undertake independent assessments of their insurance arrangements; and
- publish the results of these assessments.
Following consideration of these independent assessments, Queensland’s property reinsurance arrangements have been assessed by the Commonwealth as appropriate and meeting NDRRA requirements.