Professional Indemnity Premium Revenue Declines Amidst Stable Claims
Professional Indemnity Premium Revenue Declines Amidst Stable Claims
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.
In an evolving insurance landscape, professional indemnity (PI) insurance payments for non-facility business have remained relatively consistent, with the Australian Prudential Regulation Authority (APRA) reporting $1.111 billion in claims for the 2022 underwriting year, closely matching the $1.109 billion in the previous year.
However, the same period saw a notable dip in gross written premium for PI, which dropped by 6% to $2.775 billion from $2.954 billion, according to data from APRA's latest National Claims and Policies Database.
In contrast, public and product liability insurance for non-facility business experienced a modest reduction in claims payments by 1% to $1.102 billion, while the gross premium for this category saw a 6% increase, reaching $2.914 billion.
Further dissecting the data, APRA revealed that the average written premium for PI insurance decreased more significantly, by over 10%. Conversely, average premiums for public and product liability insurance surged nearly 8% during the same period.
The APRA's comprehensive database, encompassing policy and claims data since 2003, highlights trends in PI and public and product liability insurance. The data accounts for every open, reopened, or completed claim and policy underwritten by APRA-regulated general insurers.
Additionally, the number of PI claims for non-facility businesses that received payments declined by 8% to 17,433 in the 2022 underwriting year. A slight 1% reduction was noted in public and product liability claims, which dropped to 26,483.
Interestingly, data from Lloyd's Australia presents a different trend for PI claims in non-facility business. Lloyd’s reported a 13% increase in claims payments, amounting to $187 million, while payments for public and product liability claims decreased by 4%, totaling $59 million.
Lloyd’s also recorded gross premium totals of $558 million for PI insurance and $290 million for public and product liability insurance in the 2022 underwriting year.
Insights from these comprehensive datasets underscore the varied dynamics within the insurance sector, with professional indemnity insurance facing shifts in premium revenue despite stable claims, while public and product liability insurance show increased premiums despite a marginal decrease in claims.
The original analysis was reported based on data compiled by APRA and Lloyd’s Australia.
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.
Australia's Compensation Scheme of Last Resort (CSLR) is facing significant pressure due to a surge in claims linked to failed financial products. This uptick has led the Insurance Council of Australia (ICA) to call for structural reforms to ensure the scheme's sustainability. - read more
Australia's financial services sector is currently experiencing a notable increase in professional indemnity (PI) claims, driven by intensified regulatory scrutiny and recent legal actions. This trend has significant implications for professionals and insurers operating within the industry. - read more
Effective 1 July 2026, all registered building practitioners in New South Wales (NSW) will be mandated to hold professional indemnity (PI) insurance, as stipulated by the Design and Building Practitioners Act 2020. This legislative change aims to enhance accountability and protect clients from potential financial losses due to professional negligence or defects in construction work. - read more
In a significant development for New South Wales' housing sector, Productivity Commissioner Peter Achterstraat has called for the prompt elimination of commissions received by strata managers. This recommendation aims to bolster transparency and affordability within the state's burgeoning strata housing market. - read more
In its recently released 2025 State of the Strata Market report, CHU, Australia's leading strata insurance underwriting agency, provides an insightful analysis of the current landscape of strata insurance. The report underscores a notable stability in strata insurance premiums, which have seen a modest increase of 2.8% over the past year, rising from $954 to $981 per lot annually. This increment is significantly lower than the 14% surge observed in house insurance premiums during the same period. - read more
The Insurance Council of Australia (ICA) has recently called for comprehensive reforms to Victoria's strata legislation, highlighting that inadequate governance and deferred maintenance are contributing to escalating insurance premiums for the state's strata property owners. This appeal underscores the pressing need for legislative updates to enhance the management and maintenance of strata-titled properties. - read more
In a recent submission to the Parliamentary Joint Committee's inquiry into small business insurance, the Insurance Council of Australia (ICA) has highlighted the pressing need for reforms to enhance the resilience of Australia's 2.5 million small businesses. These enterprises, which employ nearly half of the private sector workforce, are facing mounting challenges due to escalating insurance premiums and evolving risks. - read more
Deloitte has released its 'Growth in Insurance Series: Insurance Predictions 2026,' offering insights into the transformative trends expected to shape the Australian insurance industry. The report identifies eight key predictions that insurers should consider to remain competitive and responsive to the evolving market landscape. - read more
The Australian Prudential Regulation Authority (APRA) has recently imposed an additional $2 million capital requirement on Sovereign Insurance Australia Pty Ltd. This directive aims to bolster the insurer's financial resilience and ensure its capacity to meet policyholder obligations. - read more
Recent findings from the PwC Insurance Banana Skins Survey reveal that Australian insurers are falling behind their global counterparts in terms of risk preparedness. The survey, which gathered insights from 698 insurance executives across 42 territories, indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to the global average. - read more
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
In the world of agriculture, having the right insurance coverage is essential. Farming is a high-risk industry that deals with unpredictable elements, and insuring your farm equipment can safeguard your livelihood. - read more
Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. - read more
Australian farmers face a unique set of challenges due to the vast and varied climate conditions that sweep across the continent. From the scorching heat and prolonged droughts of the Outback to the tropical storms and torrential rains of the northern regions, weather-related risks are an integral part of agricultural life in Australia. - read more
For Australian farmers, livestock is more than just a vital asset; it's the heartbeat of their livelihood. In a land where the sunburnt plains are as relentless as they are beautiful, protecting your herd isn't just a duty; it's a necessity. That's where livestock insurance comes into play—a shield against the unpredictability of Mother Nature. - read more
Welcome to the defining era where technology and agriculture entwine, bringing forth the digital farmer's era. With the evolution of agribusiness in the tech age, comes an array of new tools, opportunities, and risks. As a custodian of the earth and steward of the latest innovations, safeguarding your digital farm is just as crucial as nurturing your crops and livestock. - read more
In the dynamic world of Australian agriculture, farm equipment plays a crucial role in the day-to-day operations of farms. From tractors to harvesters, having the right machinery means managing your farm more efficiently. However, the high value of this equipment makes it essential to protect it adequately through insurance. - read more
Hobby farming has become increasingly popular in Australia, with many individuals and families embracing the joys of growing their own produce, raising livestock, and enjoying a rural lifestyle. Whether it's a small vegetable garden, a few chickens, or a larger mixed farming operation, hobby farms offer both relaxation and a connection to nature. - read more
Farming, at its core, is an enterprise fraught with uncertainty. Weather calamities, pests, diseases, and fluctuating market conditions can all impact the output and quality of produce. This is where crop insurance proves its worth, serving as a safety net for farmers against the myriad risks they face each season. - read more
As the backbone of Australian agriculture, farm equipment plays an essential role in day-to-day operations across our expansive and diverse landscapes. From the vast wheat belts to the tropical fruit farms, machinery ensures efficiency and productivity in the face of constant challenges. But with reliance on such equipment comes significant risk—the financial burden of damage or loss can be devastating to a farmer's livelihood. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Insurance broker: An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.