Competition in the public liability area is sufficient to ensure efficient and cost-effective claims management practices in Australia, according to Productivity Commissioner Judith Sloan. In a report to the Federal Government, she said that while the broad steps in managing claims are common across the industry, claims management practices between insurers are widely varied. The reason: the diverse nature of risks covered, institutional arrangements and regulatory regimes. “As a result there is no single best practice for claims management – no one size fits all,” she said.

The study was set up in response to concerns that Commonwealth, state and territory strategies to improve the availability and affordability of public liability insurance won’t impact on premiums.

Assistant Treasurer Helen Coonan welcomed the results, saying they ensure that benefits from the recent changes to Government policy will be passed on to consumers. 

“What is pleasing is that the Productivity Commission also found there is nothing inherent in claims management practices which would prevent consumers from reaping the benefits of reforms to improve the availability and affordability of public liability insurance,” she said.