APRA Reports Significant Increase in Public Liability Insurance Premiums
Rising Claims and Legal Expenses Drive Up Insurance Costs for Businesses
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The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database (NCPD) statistics, revealing a substantial increase in public liability insurance premiums over recent years.
According to the data, premiums have risen by 40% since 2015, a rate that surpasses general inflation and places additional financial strain on businesses across the country.
Several factors contribute to this upward trend in premiums:
Increase in Bodily Injury Claims: The average size of finalised bodily injury claims has grown by 5.5% annually since 2013, with work injury claims doubling in size compared to other bodily injury claims.
Rise in Psychological Claims: There has been a notable increase in psychological injury claims, adding to the overall inflation in claims costs due to social, legal, and medical factors.
Escalating Legal Expenses: The increasingly litigious environment has led to higher legal costs, further driving up insurance premiums.
In response to these rising costs, many businesses are opting for policies with higher deductibles, effectively assuming more risk to manage premium expenses. This trend reflects the challenges businesses face in balancing the need for adequate coverage with the financial realities of increased insurance costs.
The APRA report underscores the importance of ongoing data analysis and industry collaboration to develop strategies that address the root causes of rising premiums. By understanding the factors driving these increases, stakeholders can work towards solutions that ensure the sustainability of the public liability insurance market while providing businesses with the protection they need.
Published:Sunday, 19th Oct 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
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