Australia’s liability insurers are selling more policies and are generally growing – but the sector’s profitability is not so easy to define.

The Australian Prudential Regulation Authority (APRA) has released a nine-year survey showing how liability insurers are performing.

Figures for the number of risks covered and premiums earned show business is booming in the mining states but is subdued in traditional manufacturing regions.

But profitability is unclear because APRA has devised a set of claims figures that defy interpretation.

Its tables are based on claims reported and finalised, but there is no indication when these two events occur.

Because liability claims can be settled many years after the event, it is not known if a contingency payment is included each year the claim is active or if the settlement figure appears only in the year a payment was made.

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