Nervous doctors are sweating it out over ailing insurer Australasian Medical Insurance Ltd, (United Medical Protection’s fully owned insurance company) after APRA launched an investigation into its viability. 

According to the regulator there has been a “significant decline” in AMIL’s financial position since its previous balance date on June 30 last year. United chairman Dr John Quayle said the group will need to increase consolidated capital from $38 million at December 31 to $68 million by June 30 this year if they are to meet APRA’s standards.  

A half-yearly actuarial valuation performed by PricewaterhouseCoopers showed the claims “spike” from the announcement of the introduction of the Health Care Liability Act in NSW meant an $80 million increase in claims received during 2001. The spike was caused by a run of claims incurred before July 5 2001, the enactment date, which were then lodged over the ensuing months.

The Federal Government has pledged its support to doctors, assuring them that they will not become exposed to litigation. A number of other shocks have stung AMIL recently, including the collapse of HIH, reinsurance rises and Australia’s largest medical indemnity award.