APRA Data Highlights Rising Public Liability Insurance Costs

This upward trend, which began in 2017, is largely attributed to a worsening claims experience. Bodily injury claims, in particular, have been a significant driver of increased premiums, with average finalised claim sizes growing by 5.5% annually since 2013. Work injury claims have doubled in size compared to other bodily injury claims, contributing to the escalating costs.

In response to these rising premiums, many businesses are opting for policies with higher deductibles, effectively assuming more risk to manage costs. This shift indicates the financial pressures faced by businesses, especially small and medium-sized enterprises (SMEs), in maintaining adequate insurance coverage.

APRA's data underscores the need for a comprehensive review of the factors contributing to rising insurance costs. Addressing these issues is crucial to ensure that businesses can access affordable and sustainable public liability insurance, which is essential for their operations and financial security.