Tort law reforms have resulted in a 27% fall in public liability premiums within the past five years, according to the Insurance Council of Australia (ICA).

The council’s latest Industry In Focus report shows the number of policies written has increased by more than 20% as their cost fell, although growth is now slowing.

A total of 2,075,493 public liability policies were in force across Australia last year, while the average premium rate of $752 compares with $1032 in 2003.

ICA attributed the lower insurance costs to the tort law reforms introduced after 2001 by the states and Federal Government.

The reforms were introduced after a confluence of events created a crisis in available public liability cover. They included the HIH collapse, terrorist attacks in the US, increasing court-awarded damages claims, falling investment returns and underwriting losses.

The reforms included changes to the establishment of liability and the extent of damages, as well as procedural reforms to how cases were presented in the courts.

Though some academics and lawyers have criticised the reforms for going too far, ICA claims the latest figures show the objectives of the reforms “have been met and should be maintained for the benefit of all in the Australian community”.

Policy data is taken from the National Claims and Policy Database and is collected by the Australian Prudential Regulation Authority.