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.
Published:Wednesday, 7th Aug 2024 Author: Paige Estritori Sources
Please Note: If this information affects you, seek advice from a licensed professional.
Budget Direct has been honored with the inaugural 'Insurer of the Year' title at the 2026 Finder Provider of the Year Awards, solidifying its position as a leading choice for Australians seeking exceptional insurance coverage. This recognition is accompanied by four additional category wins, making Budget Direct the most awarded provider in this year's ceremony. - read more
The Insurance Council of Australia (ICA) has expressed strong support for the proposed Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, which aims to establish a general prohibition on unfair trading practices within Australian Consumer Law. This legislation is designed to empower regulators to take decisive action against predatory operators, particularly within the claims management sector. - read more
Australians are bracing for a substantial increase in private health insurance premiums, with an average rise of 4.41% scheduled to take effect from April 1, 2026. This marks the most significant hike since 2017 and is expected to place additional financial pressure on households already contending with the rising cost of living. - read more
The Insurance Council of Australia (ICA) has declared Significant Events in response to the severe flooding that has recently impacted communities in the Northern Territory and Queensland. This declaration aims to expedite the insurance industry's response and provide necessary support to affected residents. - read more
Insurance Australia Group (IAG) has revised its fiscal 2026 outlook upwards, following the successful acquisition of the Royal Automobile Club of Queensland's (RACQ) insurance arm. This strategic move is set to bolster IAG's presence in the Queensland market and drive substantial growth in the coming year. - read more
In a concerted effort to enhance the effectiveness of professional indemnity (PI) insurance within Australia's financial services sector, leading industry bodies have submitted a joint proposal to the Treasury. The submission, dated 13 February 2026, underscores the necessity for increased transparency and proactive measures to prevent systemic failures that have previously led to significant consumer losses. - read more
CHU, Australia's leading strata insurance underwriting agency, has significantly increased its capacity to insure larger residential and commercial strata developments. The company has raised its maximum single risk capacity from $300 million to $690 million, more than doubling its previous limit. This expansion applies to CHU's strata insurance policies across both residential and commercial properties, encompassing all property-related sections under a single policy, including insured property, catastrophe cover, and lot owners' fixtures and improvements. - read more
The Australian Competition and Consumer Commission (ACCC) has called for a ban on strata insurance commissions, highlighting concerns that undisclosed financial arrangements are misleading consumers and driving up insurance costs. ACCC Chair Gina Cass-Gottlieb emphasized that hidden payments and commissions create financial incentives that may not align with the best interests of property owners. - read more
Recent research conducted by the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade (DFAT) has unveiled a concerning trend: approximately 14% of Australian travellers embark on international journeys without any form of travel insurance. This statistic has prompted Allianz Partners to urge Australians to reconsider the importance of securing adequate coverage before travelling abroad. - read more
Southern Cross Travel Insurance (SCTI) has reported a notable rise in high-cost travel insurance claims, underscoring the escalating medical expenses faced by Australian travellers abroad. The insurer's most expensive claim last year amounted to $672,630, a 259% increase compared to the previous year's highest claim. - 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
Welcome to the first steps in future-proofing your farming legacy. When we think about the hustle and bustle of daily farm life, it's easy to overlook the critical importance of estate planning. For the Australian farmer, estate planning is not just a matter of securing your assets; it's about ensuring the survival and progression of your hard-earned labour to the next generation. - 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
Farming is inherently risky. With factors like weather, pests, and market fluctuations affecting crops, it's crucial to manage these risks effectively. - read more
Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
Crop insurance is a type of insurance policy designed to protect farmers from the financial losses that arise from damages to their crops. This could be due to various risks, including adverse weather conditions, pests, and diseases. - 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 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
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
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
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Claim: A formal request made by the policyholder to the insurance company for payment of a loss covered by the insurance policy.