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ARTICLE · 27 FEBRUARY 1996

Medical Defence Union Establishes Guernsey-Based Insurance Company

GuernseyEnvironment
One of the world's largest medical legal assistance organisations - the Medical Defence Union - has rearranged its claim funding structure by forming its own Guernsey- based captive, the MDU Insurance Company Limited.

The change comes after years of escalating claim payments - up from £30,000 in 1964 to £36m. in 1994 - coupled with forecasts of worse to come because of the UK's adoption of the American style 'no win, no fee' system.

Last year the MDU decided to undertake a complete review of its claim funding structure which led to a nine-month, detailed feasibility study with sixteen captive domiciles, other than Guernsey, bidding for its business.

Steve Butterworth, Superintendent of Insurance says: 'Because Guernsey came out on top, we know the Island's resources have to be the best in the world.'

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