APRA Reports Stability in Professional Indemnity Claims with Decreasing Premiums
Insights into the 2022 Underwriting Year for PI Insurance
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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.
However, the report also highlights a 6% decline in gross premiums for PI insurance, dropping from $2.954 billion to $2.775 billion. This reduction in premiums suggests a softening market, potentially offering financial relief to businesses seeking PI coverage.
Despite the decrease in premiums, the number of PI claims on which payments were made for non-facility business fell by 8% to 17,433. This decline in claim numbers, coupled with stable claims payments, may indicate improved risk management practices among professionals or a more selective underwriting approach by insurers.
For businesses and professionals, these trends underscore the importance of maintaining robust risk management strategies to benefit from favourable insurance terms. The data also suggests that the PI insurance market is becoming more competitive, which could lead to more tailored and cost-effective coverage options for policyholders.
As the insurance landscape continues to evolve, staying informed about market trends and regulatory developments is crucial for professionals seeking to secure adequate and affordable PI insurance coverage.
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