The legal establishment might still be resisting the fact, but tort reform is working and the flow-on effects of the legislation have already substantially benefitted the community, according to the Insurance Council of Australia (ICA).

It says the Australian Prudential Regulation Authority’s latest statistics from its National Claims and Policies Database show more than 36,000 additional public liability policies were written in NSW in the 12 months to December 2004 than in 2003.

NSW public liability premiums have also reduced. In 2003 the average public liability premium was $1039, while last year the average premium dropped 10.7% to $928.

ICA Deputy CEO Dallas Booth says the reforms have resulted in the reduction of public liability premiums, increases in the number of policies sold, an increase in the availability of cover, and a stabilisation in claim numbers and frequency.

“Because of the risk of being sued, reported increases in the availability of affordable public liability insurance as a result of federal, state and territory governments’ tort law reforms is good news for the community,” he said.

Mr Booth says it will be some years before the true impact of the changes can be measured and assessed with confidence. “In the meantime, insurers have passed savings on to their policyholders, and the community is benefiting from these reforms.”