The Australian Prudential Regulation Authority (APRA) has released its annual general insurance claims development data for long-tail, short-tail, other direct classes and reinsurance. 

Houseowners/householders product line cost the industry an estimated $4.56 billion in gross claim payments in the 2022 accident year, up from $3.32 billion in 2021, according to APRA. 

The ultimate loss ratio worsened to 89.1% from 59.4% while gross earned premium rose to $11.56 billion from $10.65 billion. 

Domestic motor vehicle gross claim payments in the 2022 accident year were about $5.6 billion, compared with $4.87 billion in the 2021 accident year, the ultimate loss ratio weakened to 67.5% from 60.6% and gross earned premium increased to $11.76 billion from $10.98 billion. 

Among long-tail classes, professional indemnity (PI) gross claim payments fell to $97 million in the 2022 accident year from $129 million in 2021, the ultimate loss ratio improved to 59.2% from 65.5% and gross earned premium increased to 3.6 billion from $3.2 billion. 

Estimated gross ultimate cost – defined as the sum of gross claim payments, gross case estimates and reserves to cover potential claims – increased to $2.15 billion from $2.12 billion. 

Compulsory third party motor vehicle gross claim payments crept up slightly to $114 million from $112 million, the ultimate loss ratio went up to 86.9% from 84.4%, gross earned premium rose to $3.35 billion from $3.3 billion and estimated gross ultimate cost increased to $2.9 billion from $2.72 billion. 

The APRA data excludes statistics on Lloyd’s Australian operations. 

APRA says the next data update will be released in July next year. 

Click here for the statistics.