APRA releases general insurance claims development statistics for December 2021

The Australian Prudential Regulation Authority (APRA) released General Insurance Claims Development Statistics publications for December 2021.

Written on 27 July, 2022
Amy Cai

The Australian Prudential Regulation Authority (APRA) released General Insurance Claims Development Statistics publications for December 2021.

Reinsurance

The estimated ultimate loss ratio in the 2021 underwriting year was 52.9 per cent, which is broadly in line with recent years.

 

Long tail insurance claims:

CTP motor vehicle

The ultimate loss ratio (84.4 per cent) and remained in line with 2018-2020, but lower than prior years at the same stage of development.

Reserve levels have remained largely unchanged.

Public and product liability

The estimated loss ratio was 51.9 per cent, lower than recent years at the same stage of development. This result was driven by increases in gross earned premium.

Reserve levels strengthened from 2016-2020.

Professional indemnity

The estimated ultimate loss ratio was 66.7 per cent, which is slightly higher than 2020 figures at the same stage of development. This result was due to increases in expected future claims offsetting the increases in premiums.

Reserve levels strengthened from 2016-2020.

Employers’ liability

The estimated ultimate loss ratio was 71.6 per cent, which is lower than recent years. This is driven by increase in premiums.

Reserve levels strengthened in 2019 and 2020, while remaining largely unchanged for most other years.

 

Short tail insurance claims:

Houseowners/householders

The estimated ultimate loss ratio was 62.1 per cent, tracking higher than the 10-year average of 56.7 per cent.

Domestic motor vehicle

The estimated ultimate loss ratio was 60.7 per cent, tracking lower than the 10-year average of 66.9 per cent. This is due to the reduced frequency of claims, caused by lockdowns initiated throughout the year in response to COVID-19.

Fire and ISR

The estimated ultimate loss ratio was 59.3 per cent, which is lower than the 10-year average of 69.6 per cent.

Commercial motor vehicle

The estimated ultimate loss ratio was 58.6 per cent, which is lower than the 10-year average of 66.8 per cent. The 2021 result is also the continuation of a download trend in recent years, driven by premium growth and the reduction in claims throughout the pandemic.

 

For more information, visit the APRA website here.