Australia’s liability insurance market has entered a “new phase” after years of rate strengthening and positive underwriting outcomes, according to a KPMG analysis of a regulator’s data.

The Australian Prudential Regulation Authority’s revised National Claims and Policies Database now covers professional indemnity and public and product liability insurance from 2003 to December 2024.

KPMG says the updated statistics, released in July, indicate pricing momentum is beginning to ease in parts of the market.

“At the same time, evolving claims experience, competitive pressures and emerging risks continue to reshape the landscape for insurers, brokers and policyholders,” the consultancy says in a report.

“Australia’s liability insurance market is entering a new phase.”

KPMG says professional indemnity average premiums strengthened to 2021 before moderating, while risk counts continued to increase.

“The combination supported strong GWP growth, although recent experience points to softer pricing momentum.”

In public liability, average premiums increased more gradually, alongside a comparatively stable risk count in recent years.

But in 2024, the APRA data shows, average premiums and GWP started to moderate.

KPMG partner Grace Ng says APRA’s data on cyber cover also reveals “interesting” trends amid growing concern over digital threats facing Australian businesses.

Cyber insurance growth moderated from its 2022 peak, with risk counts declining and average premiums remaining below 2020 levels despite a modest recovery in 2024.

In 2022, the cyber risk count issued exceeded 70,000, with more than $140 million in total gross written premium. In 2024, the risk count was just below 50,000, with GWP below $120 million.

“Do businesses fully understand their cyber risk exposure? That’s the question,” Ms Ng told insuranceNEWS.com.au. “Are they buying what they need? Or as they weigh up the varying cost of doing business, how are they looking at the expense of cyber insurance?”

KPMG says the cyber threat landscape continues to change and notes increasing competitive pressure in the market, asking: “Do current premiums adequately reflect systemic and accumulation exposures?”

The APRA data also points to Lloyd’s increased presence across the PI and PL markets.

“If you’re looking at GWP, Lloyd’s PI share is about 14%-16% and public liability is about 8%-9% ... In both cases, that share has roughly doubled over the last decade,” Ms Ng said.