APRA's Findings: Stability in PI Claims and Decreasing Premiums
Analyzing the Implications for Professionals and Insurers
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, dropping from $2.954 billion to $2.775 billion. This reduction suggests a shift in the insurance market, potentially driven by increased competition among insurers and a reassessment of risk profiles.
For professionals and businesses, this trend could translate into more affordable PI insurance options. However, it's essential to ensure that reduced premiums do not compromise the adequacy of coverage. Professionals should carefully review their policies to confirm they meet their specific risk exposures and comply with industry standards.
Insurers, on the other hand, may need to balance competitive pricing with maintaining sufficient reserves to cover potential claims. The stability in claims payments indicates a consistent risk environment, but the decrease in premiums could impact profitability if not managed prudently.
Overall, APRA's findings suggest a maturing PI insurance market, where both insurers and insureds are adapting to evolving risk landscapes and economic conditions. Continuous monitoring and strategic adjustments will be crucial for sustaining this balance.
Published:Sunday, 1st Feb 2026 Author: Paige Estritori Sources
Please Note: If this information affects you, seek advice from a licensed professional.
In a significant development for Australian small and medium-sized enterprises (SMEs), BizCover has announced the addition of Zurich's Professional Indemnity (PI) insurance product to its online platform, effective from 3 March 2026. This collaboration aims to provide SMEs with enhanced access to comprehensive PI coverage, addressing a critical need in the business community. - read more
In a significant development for the Australian insurance market, Markel, a US-based specialty insurer, has launched professional indemnity (PI) insurance products tailored specifically for Australian businesses. 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
Sterling Insurance has successfully secured a new professional indemnity (PI) binding authority with Lloyd's, a move that promises to provide Australian brokers with greater control over product offerings and pricing structures. This development is part of Sterling's ongoing commitment to delivering tailored insurance solutions that meet the specific needs of niche and complex risk sectors. - read more
In a significant development for Australian small and medium-sized enterprises (SMEs), BizCover has announced the addition of Zurich's Professional Indemnity (PI) insurance product to its online platform, effective from 3 March 2026. This collaboration aims to provide SMEs with enhanced access to comprehensive PI coverage, addressing a critical need in the business community. - read more
The Insurance Council of Australia (ICA) has recently voiced strong opposition to proposals suggesting the use of professional indemnity (PI) insurance as a funding mechanism for the Compensation Scheme of Last Resort (CSLR). This stance was articulated in a submission to a Treasury consultation, where the ICA emphasized that PI insurance is not designed to serve as a consumer protection tool. - read more
