Australian government to subsidise medical indemnity

As part of a package of reforms, the Australian government has announced guarantee of the solvency of Australia’s largest medical indemnity insurer, United Medical Protection (UMP). The government will also subsidise 50% of payments over A$2mn made by all medical indemnity insurers, thus lowering reinsurance costs and taking pressure off premiums. Further, where insurers have not funded incurred but not reported claims they will now be able to levy doctors, over an extended time, to fund these reserves.