APRA has greeted the Government’s decision to put the regulator in charge of medical indemnity insurance as a positive move. GM Enforcement Darryl Roberts said the reforms should “stabilise” the long-term trend in medical malpractice claims and allow insurers “to assess risks more accurately, price premiums more commercially and set provisions more prudently”.

“The great benefit flowing from the Government’s measures, for patients and doctors alike, will be a medical indemnity industry that is fully-funded and sustainable in the long term,” Dr Roberts said. “Without comprehensive change, including nationwide tort law reform, the medical indemnity industry was destined to lurch from crisis to crisis.”

ICA Executive Director Alan Mason said the move will bring more competition into the medical indemnity market. “There are currently no general insurers in the medical indemnity market, and one of the reasons is that the MDOs are not required to conform with the more onerous prudential requirements of the Insurance Act.”

AMA President Kerryn Phelps warned that questions of long-term overall premium affordability for doctors still exist, and the AMA will not accept a levy until comprehensive tort law reform is in place.