APRA Reports Stability in Professional Indemnity Claims with Decreasing Premiums
Insights into the 2022 Underwriting Year for PI Insurance
0
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.
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.
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.
The Financial Advisers Association of Australia (FAAA) has recently voiced its opposition to proposed increases in professional indemnity (PI) insurance limits, cautioning that such changes could lead to significant cost burdens for financial advisers. In a submission to the Treasury's consultation on potential reforms to PI insurance within the financial services sector, the FAAA emphasised that reforms to the Compensation Scheme of Last Resort (CSLR) should take precedence over adjustments to minimum PI settings. - read more
Markel, a prominent US-based specialty insurer, has announced the launch of professional indemnity (PI) insurance products specifically designed for the Australian market. This strategic move comes in response to a notable reduction in PI insurance capacity over recent years, leaving many professionals seeking reliable coverage options. - read more
The financial services sector in Australia has been identified as a focal point for professional indemnity (PI) claims, driven by heightened regulatory scrutiny and recent enforcement actions. Legal experts from Moray & Agnew Lawyers have highlighted that the Australian Securities and Investments Commission (ASIC) has initiated proceedings against investment funds such as Shield Master Trust and First Guardian, leading to prosecutions across the financial services chain. - read more
The Financial Advice Association of Australia (FAAA) has urged the Federal Government to reconsider any blanket increases to professional indemnity insurance (PII) requirements, expressing concerns over potential cost escalations for financial advisers. This caution comes in response to Treasury's consultation on potential reforms to PII within the financial services sector. - read more
As of 1 July 2025, the Department of Health, Disability and Ageing has introduced a professional indemnity insurance (PII) product specifically designed for midwives providing intrapartum care. This development, under the Midwife Professional Indemnity Scheme (MPIS), ensures that midwives now have access to comprehensive PII coverage for all aspects of private midwifery practice. - read more
