A national liability database could be improved by providing more detailed information, according to the Insurance Council of Australia (ICA).

A submission to the Australian Prudential Regulation Authority (APRA) says some occupational classifications are too broad, reducing the value of the National Claims and Policies Database (NCPD).

Proposed changes including splitting “financial occupations” into specific categories such as accountancy, banking, financial brokerage, superannuation and others.

“This would provide a more meaningful level of data granularity that aligns better with industry’s data requirements,” ICA says.

The changes would allow more informed analysis and governments could base policy decisions on a broader range of data that more accurately reflects insurance markets.

“Indeed, improved NCPD data would also enhance insurers’ ability to assess risk and price insurance products with greater precision,” ICA says.

It suggests bodily injury and property damage claims could be reported separately and that APRA should consider a segmentation analysis by business size. It also recommends a new product code for cyber liability policies.

APRA launched the database for public and product liability and professional indemnity insurance in January 2005 under Federal Government direction.

ICA says the database is a credible source of data on the insurance lines and provides a diverse range of users with market trend insights. “Given the substantial resources that industry collectively invests to submit NCPD data, it should be the goal of all stakeholders to ensure the NCPD provides maximum long-term public benefit,” it says.