Medical insurers MDA National and MIGA plan to form a merged group known as Medical Defence Australia.

MIGA Chairman John O’Loughlin says the combined organisation will have increased capacity to compete in Australia’s medical indemnity market.

“Economies of scale and efficiencies are expected to be achieved over time with a streamlining of the resources and infrastructure that support our national service to members and clients,” he said.

MDA National Chairman John Trowbridge will chair the merger steering committee. The tie-up is expected to take effect in the fourth quarter after members vote on it.

MIGA CEO Mandy Anderson will take charge of the new group, while MDA National CEO Peter Forbes, will defer his planned retirement until the merger. Associate Professor Julian Rait will be chairman of Medical Defence Australia.