Insurers and underwriters continue to see the Australian medical
indemnity market as a positive and profitable marketplace, even
though existing underwriters are under competitive premium pressure
from aspiring entrants.
Current insurers and aspiring entrants will be encouraged by
events of the past year. Firstly, the High Court's ruling that
damages cannot be recovered for the "loss of a chance"
has been applied in the District Court of NSW. This is because
previously there was good state authority to say damages for loss
of a chance were recoverable. This decision will have a positive
impact on the balance sheet of insurers.
Secondly, new released claims data confirms that medical
indemnity claims are resolved cheaply. 40.1% settled with no
payment, 29% for less than $10,000 and 8.8% for between $10,000 and
$30,000. These statistics will reinforce to those insurers
presently on risk that their claims are well managed. Equally, it
will encourage and incentivise
