Leading medical indemnity insurer Medical Insurance Group Australia (MIGA) says a reduction in claims due to increased risk management education has bolstered its profits, allowing it to earn almost $10 million more than expected.

In its annual report published last week the specialist insurer reported a net profit of $13.2 million, which compares favourably against the budgeted profit of $3.41 million for the year ending June 30.

Claims costs were down by $6.49 million, while premium and subscription revenue jumped by $269,000 more than expected and investment income rose $4.26 million higher than budgeted.

MIGA Chairman John O’Loughlin says reduced claim costs are the result of a strong commitment to risk management education, which signals good news for premiums in the future.

“Together with our members we have been committed to real risk management education for the past eight years,” he said. “We believe our risk management programs lead the industry as it is built around targeting areas of vulnerability.”

CEO Mandy Anderson says MIGA has been able to offer an average premium reduction of 10-15% because of the improvement in claims experience.

Since 2008 average premiums for GPs have dropped by 21%, for anaesthetists 27%, obstetricians 14% and surgeons by 37%.

“We believe there is a real correlation between our improved claims results and our strong focus on risk management and policyholders are now benefiting from this,” she said.

MIGA has also reported a 25% jump in membership and a 22% increase in net assets to $73.11 million.