The National Claims and Policies Database (NCPD) report shows that premiums have fallen again in the public liability and professional indemnity insurance market.
‘Strong competition in the liability insurance market following the Government’s insurance reforms is allowing consumers to benefit from cheaper insurance,’ the Minister for Revenue and Assistant Treasurer, Peter Dutton, said today.
Public liability insurance premiums fell on average by 9 per cent in the 12 months to 31 December 2006 and professional indemnity insurance premiums fell on average by 8.7 per cent over the same period.
The reduction in premiums for the 12 months to December 2006 comes in addition to the strong reductions seen in 2005, where the public liability and professional indemnity premiums fell on average by 12.9 and 6.7 per cent respectively.
‘The increased affordability of public liability and professional indemnity insurance is good news for the community. The reduction in premiums for another year shows that the benefits of tort law reform are being passed onto consumers,’ Mr Dutton said.
The findings were made in the latest report of the NCPD prepared by the Australian Prudential Regulation Authority. The principle objective of the NCPD is to provide more detailed information to the insurance industry, Government and the broader community to assist in improving the affordability and availability of public liability and professional indemnity insurance in the Australian market.
The NCPD report is available at www.ncpd.apra.gov.au.