NCPD is a comprehensive database of claims and policy information on professional indemnity and public & product liability insurance. The report includes the coverage and data limitations of the NCPD and a guide to interpreting the contents of the report.
In the latest report, policies and risks written by APRA-regulated general insurers showed a 13.5% increase in gross written premium (GWP) for professional indemnity in non-facility businesses, from $1,966 million in the 2018 underwriting year to $2,232 million in 2019. Meanwhile, the GWP for public & product liability in non-facility businesses saw a 12.0% increase, from $2,417 million in the 2018 underwriting year to $2,706 million in 2019.
The report also showed that GWP for facility businesses increased by 84.8%, from $103 million in the 2018 underwriting year to $190 million in 2019.
For claims in non-facility businesses, the latest NCPD report showed a 0.1% increase, from 18,787 professional indemnity claims in the 2018 underwriting year to 18,799 in 2019. It also saw a 2.0% increase in public & product liability claims, from 30,923 in the 2018 underwriting year to 31,539 in 2019.
The increase in the number of claims in non-facility businesses increased claims payments. For example, professional indemnity claims saw an 11.8% increase, from $992 million in the 2018 underwriting year to $1,109 million in 2019. Meanwhile, public & product liability claims payments saw a 13.0% increase, from $933 million in the 2018 underwriting year to $1,054 million in 2019.
Meanwhile, facility businesses saw a 45.6% increase in claims payments from $26 million in the 2018 underwriting year to $38 million in 2019.
The latest NCPD report also revealed changes in the policies and risks written and claims from Lloyd's Australia.
In the 2019 underwriting year, the GWP for professional indemnity totalled $382 million, public & product liability $111 million, and facility business $648 million. During the same underwriting year, the number of risks for professional indemnity totalled 9,851, while that for public & product liability totalled 1,631.
“It is difficult to compare Lloyd's Australia with other APRA-regulated insurers. The specialist nature of the Lloyd's Australia market means that, along with standard business, it also writes larger and more complex risks which attract higher premiums,” APRA said.
Lastly, the NCPD indicated that claims payments for professional indemnity and public & product liability totalled $559 million in 2019, a 0.2% decrease from $560 million in 2018.
