APRA Data Shows Significant Rise in Public Liability Insurance Premiums

Businesses Face Financial Strain as Insurance Costs Outpace Inflation

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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.

This upward trend began in 2017 and 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.

Published:Sunday, 8th Feb 2026
Author: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Knowledgebase

Elimination Period:
The time period between an injury and the receipt of benefit payments from an insurer, particularly in disability insurance.

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