Medical indemnity insurance has become more affordable and stable, according to a Federal Government review of the market.

Federal Health Minister Tony Abbott says doctors are pleased with the way reforms have been implemented since the sharp premium rises of 2003. That, in turn, has led to a more stable supply of their vital skills.

“When doctors have confidence in their medical indemnity insurance cover, it helps maintain the range and level of medical services,” he said.

The first official review of the Government’s reform package – co-chaired by Mr Abbott and Assistant Treasurer Peter Dutton – says the market has substantially improved.

“There is no need for a doctor to stop practising because he or she cannot obtain cover,” it reported. “However, the medical indemnity package is still in its relative infancy and the gains that have been made so far still need to be secured.”

As well as tort reforms, the package included subsidies for doctors with “high-risk” specialties, and further assistance to medical indemnity providers. The Government also placed the market under the watch of the Australian Prudential Regulation Authority.

Mr Abbott says the review supports all the current arrangements and warns against any push to wind them back.