The Australian Prudential Regulation Authority (APRA) today released updated information on policies and claims for public and product liability (PL) and professional indemnity (PI) insurance. This information is contained in the upgraded National Claims and Policies Database (NCPD) and is the most complete and detailed to date.
The NCPD reports now contain an additional 700,000 data items. Following public consultation, these data have been declared non-confidential. By releasing these data in detailed claims reports covering 2003 to 2011, APRA aims to increase the usefulness of the NCPD reports and the value of the NCPD data collection.
Contributors and subscribers can, for the first time, use the reports to analyse risk factors such as industry or occupation group, and variations to product or policy coverage.
As an example, the reports show professional indemnity claim payments increased from the onset of the global financial crisis. Payments on claims for financial occupations increased from $29 million in 2007 to $146 million in 2011, an increase of 409 per cent. By comparison, claim payments for all other professions increased from $312 million to $580 million, or 86 per cent over the same period.
The improvements to the NCPD reports were made possible by new hardware and upgraded versions of the NCPD software. As a result of the upgrade, the accuracy and reliability of the NCPD have also improved. APRA has re-issued previous reports to include the revised data.
The NCPD reports are available at www.ncpd.apra.gov.au.
The NCPD was established by APRA in 2003 at the request of the Federal Government, and in consultation with the insurance industry and other stakeholders. The improvements to the NCPD reports give insurers, the community and the Government a better understanding of public and product liability insurance and professional indemnity insurance and the ability to monitor trends in premiums and claim costs.
More information about the NCPD is available on the APRA website.