Ministers at the Brisbane meeting were also briefed on an actuarial report from PricewaterhouseCoopers which found the Ipp package could immediately reduce premiums by about 13.5%. It’s a figure the insurers have few problems with.

The report also found there will be an 80% reduction in the number of small claims and suggested the Ipp package will also reduce medical indemnity premiums by 15-18%.

Mr Mason said insurance representatives at the meeting agreed with the report’s findings on the likely reduction in claims costs and the flow-through to premiums. “Further, the behavioural effects of adopting the suite of Ipp recommendations on the definition of negligence, duty of care, and other recommendations on liability reform should result in further longer-term savings,” he said.

Mr Mason said another important decision was to adopt provisions relating to proportionate liability for professional indemnity along the lines of those contained in the New South Wales Civil Liability Amendment (Personal Responsibility) Bill 2002.

“These outcomes will of course depend on the accurate drafting of the legislation, the timetable for the legislation to be passed in each jurisdiction and its interpretation by the courts,” he said.