APRA's 2022 Data Shows Stable PI Claims and Premium Reduction

Notably, the gross premium for PI insurance experienced a 6% decline, dropping from $2.954 billion to $2.775 billion. This reduction suggests a shift in the market dynamics, potentially influenced by increased competition among insurers and a more selective underwriting approach.

The number of PI claims with payments made for non-facility business decreased by 8% to 17,433, indicating a possible improvement in risk management practices among professionals or a more stringent claims assessment process by insurers.

For professionals and business owners, these trends underscore the importance of staying informed about the evolving insurance landscape. While the stability in claims payments is reassuring, the decrease in gross premiums may reflect changes in policy terms, coverage limits, or insurer appetite. Engaging with knowledgeable insurance brokers can provide clarity and ensure that coverage remains adequate and competitively priced.

As the market continues to adjust, professionals should proactively review their insurance policies to align with current industry standards and safeguard against potential liabilities.