APRA's 2022 Data Shows Stable PI Claims and Premium Reduction
Professional Indemnity Insurance Market Sees Decrease in Premiums Despite Steady Claims
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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.
Despite the stability in claims payments, the gross premium for PI insurance experienced a 6% decline, dropping from $2.954 billion to $2.775 billion. This reduction suggests a softening market, potentially offering financial relief for professionals and businesses seeking PI coverage.
The number of PI claims with payments made for non-facility business decreased by 8% to 17,433, indicating a downward trend in claim frequency. This decline may reflect improved risk management practices among professionals or a more selective approach by insurers in underwriting policies.
For professionals and businesses, these trends highlight the importance of regularly reviewing insurance coverage to ensure it aligns with current market conditions and risk profiles. Engaging with insurance brokers or advisors can provide valuable insights into obtaining adequate coverage at competitive rates.
Overall, APRA's data suggests a period of stability in the PI insurance market, with potential opportunities for professionals to secure cost-effective coverage while maintaining robust protection against liability risks.
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