APRA's 2022 Data Shows Stable PI Claims and Premium Reduction
Insights into the Australian Professional Indemnity Insurance Landscape
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The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database, providing valuable insights into the professional indemnity (PI) insurance sector for the 2022 underwriting year.
The data indicates that PI claims payments for non-facility business remained relatively stable at $1.111 billion, a slight increase from $1.109 billion in the previous year.
Notably, the gross premium for PI insurance experienced a 6% decline, dropping from $2.954 billion to $2.775 billion. This reduction suggests a shift in the market dynamics, potentially influenced by increased competition among insurers and a more selective underwriting approach.
The number of PI claims with payments made for non-facility business decreased by 8% to 17,433, indicating a possible improvement in risk management practices among professionals or a more stringent claims assessment process by insurers.
For professionals and business owners, these trends underscore the importance of staying informed about the evolving insurance landscape. While the stability in claims payments is reassuring, the decrease in gross premiums may reflect changes in policy terms, coverage limits, or insurer appetite. Engaging with knowledgeable insurance brokers can provide clarity and ensure that coverage remains adequate and competitively priced.
As the market continues to adjust, professionals should proactively review their insurance policies to align with current industry standards and safeguard against potential liabilities.
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