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Ica Urges Caution On Claim Of Taking Advantage

The Age

Thursday June 9, 2005

LISA MURRAY

THE insurance industry has hit back at claims it is not passing on the benefits of tort reform to consumers.

A report released by the Insurance Council of Australia yesterday said it was too early to assess the impact of tort reforms on insurance profits. The ICA was responding to claims made last week in a Law Council presentation that public liability premiums and payouts had blown out, helping insurance companies to generate their highest returns in more than a decade.

Actuary Estelle Pearson said in the report the estimate that insurers made a 19 per cent return on capital for public liability business last financial year needed to be treated with caution as it depended on several approximations and extrapolations.

© 2005 The Age

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