APRA Reports Stability in Professional Indemnity Claims with Decreasing Premiums

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.