Recent market pricing reviews and wholesaler reinsurance discussions show that Individual Pharmacist Professional Indemnity Insurance Premiums have been increasing approximately in line with inflation and there are no major price rises projected for 2023.
There are two key reasons why we do not expect major increases this year:
- The low number of claims attributed to individual pharmacists’ policies. The claims are usually covered under the owner's business store policy and not the PI policy.
- The Australian Health Practitioner Regulation Agency (AHPRA) requirement for all pharmacists to have $20 million of cover provides a very large and stable premium pool to fund claims and in turn, helps to keep premiums down.
Market Provider Update
In November 2022 the Pharmaceutical Society of Australia (PSA) announced their PI insurance plan will be discontinued after less than 2 years since the product’s launch. This decision seems largely due to advice the PSA received from their insurance provider - BMS Risk Solutions that they were unable to place PSA’s PI insurance in the coming term. This means clients will need to find a new provider.
If you are looking for a new provider, I encourage you to contact a few. This will allow you to compare how attentive they are on the phone and how responsive they are to emails. Be sure to ask how much they charge and what they provide and make a choice that best meets your needs this year.
Head of Carollo Horton