Medical indemnity gets clean bill of health
The Australian Competition and Consumer Commission (ACCC) says medical indemnity insurance prices are now where they should be, seven years after industry turmoil saw rates rocket.
In a sixth and final monitoring report, the ACCC says premiums are both actuarially and commercially justified for all national medical indemnity insurers.
The commission has been monitoring premiums since 2002 when market leader United Medical Protection went into provisional liquidation.
The Federal Government stepped in with a rescue package as some doctors found themselves without cover and premiums rose alarmingly.
The ACCC report says medical indemnity insurers’ capital levels have improved significantly since 2003/04 due to requirements set by the Australian Prudential Regulation Authority (APRA).
Australia’s five national medical indemnity providers are Avant Insurance, MDA National Insurance, Medical Insurance Australia, MIPS Insurance and QBE.
Former medical indemnity insurer Gary Gribbin, now a director of Insurance House Group, says close scrutiny by APRA is keeping the sector in good shape, even though the global financial crisis has taken a toll on assets, in line with the industry generally.
“Other than what may or may not be severe losses on a couple of insurer investment portfolios the sector has been very strong since 2003,” Mr Gribbin told insuranceNEWS.com.au. “The companies have made excellent profits.”
In a sixth and final monitoring report, the ACCC says premiums are both actuarially and commercially justified for all national medical indemnity insurers.
The commission has been monitoring premiums since 2002 when market leader United Medical Protection went into provisional liquidation.
The Federal Government stepped in with a rescue package as some doctors found themselves without cover and premiums rose alarmingly.
The ACCC report says medical indemnity insurers’ capital levels have improved significantly since 2003/04 due to requirements set by the Australian Prudential Regulation Authority (APRA).
Australia’s five national medical indemnity providers are Avant Insurance, MDA National Insurance, Medical Insurance Australia, MIPS Insurance and QBE.
Former medical indemnity insurer Gary Gribbin, now a director of Insurance House Group, says close scrutiny by APRA is keeping the sector in good shape, even though the global financial crisis has taken a toll on assets, in line with the industry generally.
“Other than what may or may not be severe losses on a couple of insurer investment portfolios the sector has been very strong since 2003,” Mr Gribbin told insuranceNEWS.com.au. “The companies have made excellent profits.”