On 10 May 2023, the Australian Prudential Regulation Authority
(APRA) released a report (Report)
on the claims trends and policies data that APRA collects in its
annual National Claims and Policies Database
(NCPD).1
The Report explores major drivers of claims costs and
affordability of Public and Product Liability
(PPL), Professional Indemnity
(PI) and Directors and Officers
(D&O) insurance, with the key points
being:
Public and Product Liability
Premiums have increased by about 30% from an average of $720m
p.a. (over 2009 to 2013) to an average of $940m p.a. (over 2014 to
2021). The increase in cost was mainly driven by large public
liability claims (being claims above $500,000). In addition, as
premium increases started to occur in 2017 in response to worsening
claims experience, the proportion of policies with a larger
deductible began to increase.
