Meanwhile, a PI expert has called on insurers to provide better policy wordings and endorsements if the market in Australia is to improve.

Paul Muller, MD of Resource Underwriting Pacific, told an Australian Professional Indemnity Group symposium in Melbourne last week that poor construction of policy wordings and recent increases in restrictions by underwriters on certain occupations are a major problem for every professional.

All PI insurers have done in the past two years “is to throw out all the business that has caused us losses in the past, increased the premium pool and cut cover to deal with the current level of claims”, he said.

While he remains optimistic that legislative changes may improve the situation, Mr Muller said senators’ blocking of changes to the Trade Practices Act doesn’t inspire confidence. “If I were a betting man, I believe we will see more grief before we see any real improvement.”

Calling proportionate liability “a significant deterrent for insurers”, he said uniform legislation is necessary. “If the legislation was uniform throughout Australia and we did not have any loopholes, I can see a number of insurers being prepared to look at those [difficult] occupations again.”