Medical Indemnity insurance is a significant cost for most doctors, and up until recently the lack of any real choice has meant most doctors have had no option but to renew their policy every year without the ability to seek alternative quotations. In the current climate of disruption the status quo is being challenged in just about everything, especially in industries and products that have previously seen little change or competition. Medical indemnity insurance is a perfect example of this with a recent entrant to the market shaking up the system. Many Australian doctors have experienced significant savings on their medical indemnity insurance whilst receiving improved policy cover, simply by changing their medical indemnity provider
Not only is having Medical Indemnity insurance a legal requirement for doctors, but it also protects the doctors’ reputation if a dispute arises with a patient. This is why a comprehensive policy with a reputable insurer is vital. The Australian government is very protective of the medical indemnity insurance market and only allows approved insurers to issue policies. Currently only six insurers are approved to offer medical indemnity insurance and the policies they offer must meet strict requirements set out by government legislation. Though heavy regulation in this market is justifiable it has effectively limited any real competition and as a result there have been no new entrants for some time.
Recently of one of the world’s largest insurers Berkshire Hathaway moved into the Australian market after receiving approval from the government regulator. Bringing a wealth of experience in medical indemnity around the world Berkshire Hathaway were approved to become the sixth provider of medical indemnity insurance to doctors in Australia. The most interesting thing about this new player in the market is that they operate very differently to the existing players who are all Medical Defence Organisations (MDO’S), which are based on an outdated UK system. This brings a real point of difference to the market.
The medical defence funds have a unique insurance system and one of the overriding principles is to apply a flat rating structure to all doctors that fit within certain billing bands. This means most doctors operating in the same field will obtain similar premiums to others regardless of how experienced they are, whether they have prior complaints and without taking in to account other important risk factors.
Berkshire Hathaway will underwrite individual doctors on their own merit. They use a number of rating factors which allows them to offer greater flexibility and often significant savings. Being a new entrant to the market they are also quite nimble in comparison to the MDO’s which have over time shifted their focus from medical indemnity to other additional services. The conferences and ancillary services offered by these MDOs often result in unnecessarily high premiums for doctors.
More and more doctors are experiencing significant savings on their medical indemnity insurance with the help of Berkshire Hathaway and are realising these savings don’t compromise the integrity of their cover. Complete 4 quick questions and get an indication of how much you can save in just 24 hours.