Despite the release of two separate reports showing premium drops in public liability and professional indemnity, the Federal Government still wants to see further rate reductions.

Speaking at the Insurance Council of Australia conference in Canberra on Thursday, Assistant Treasurer Mal Brough said reports from the Australian Competition and Consumer Commission and the Australian Prudential Regulation Authority show downward pressure on premiums.

The reports show public liability insurance premiums over the 12 months to December last year fell between 4% and 4.8% and, over the same period, professional indemnity premiums fell by 3-4%.

But Mr Brough also acknowledged criticism – mainly from the legal fraternity which has accused insurers of profiteering – that the insurers have to share the pain now the tort reform process has eased pressure on liability classes. He told his Canberra audience that while he supports the need for a profitable industry, “tort law reform is not a one-sided process and the community expects further reductions over the longer term”.

“To that end, the Government will continue monitoring to ensure that the community continues to share the benefits of tort law reform through appropriate policies being available and reduced premiums.”

Mr Brough says it’s essential for economic stability to have a secure and profitable insurance industry and “that has been achieved”.

“The Commonwealth, state and territory governments took hard decisions to halt a blowout in unaffordable and frivolous claims,” he said. “This has resulted in real and tangible benefits to the community in the form of more affordable and accessible insurance cover.”