The extent of softening in the liability markets last year has been revealed in the latest statistics on public and product liability and professional indemnity (PI) rates from the National Claims and Policies Database.

The database, which is administered by the Australian Prudential Regulation Authority (APRA), shows insurers reported total gross written premium (GWP) of $2.9 billion across these classes for the year to December 31 last year.

But total GWP in both classes fell as rates continued to soften.

In the public and product liability lines, total GWP for 2010 was $1.65 billion, down from $1.69 billion in 2009. The number of risks written nationally rose, but the average premium per risk fell from $750 in 2009 to $709 in 2010.

Rates in PI softened more severely, with total GWP down to $1.18 billion for 2010 from $1.28 billion in the previous year.

Again the number of PI risks written increased, but the average premium value fell to $2906 – the lowest level since the records began in 2003.