ICA Executive Director Alan Mason says the forum’s outcome was excellent, but it is up to individual insurers to price their premiums according to risk. “If the cost of claims changes, if the legal environment is changed, then the underwriters I’m sure will reassess their premiums,” he said.

Not all delegates were impressed with the outcome of the meeting, with the lawyers copping much of the flak and suggesting the insurers have benefitted most.

Rob Davis, CEO of the Australian Plaintiff Lawyers Association, said the summit outcome “just supports the perception the meeting was all about bailing out the insurance industry by depriving citizens of their rights and transferring the value of those rights to insurers”.

And ACCC Chairman Professor Allan Fels also expressed reservations. He said the reforms will do little to cut premiums but will erode people’s right to take legal action in cases of negligence. “The concern would be it causes firms to relax their efforts to protect the safety of the ordinary public,” he said. “Also, if people are seriously injured and have no recourse to proper compensation.” 

Not surprisingly, ICA’s Alan Mason was more positive. “The ministerial meeting has identified a number of areas in which it will be seeking input from the insurance industry and ICA, and we give our commitment to assisting in this process.”