Medical Professional Coverage Costs Under Scrutiny

Amid rising concerns, the Australian Medical Association (AMA) has flagged the escalating expenses associated with indemnity insurance premiums as a serious issue that demands attention.

Following a heated discussion at a recent national conference held on the Gold Coast, the AMA and its New South Wales branch convened with a number of medical defence organisations to tackle this pressing matter.

During these meetings, participants delved into changes in healthcare delivery and the evolving scopes of medical practice-factors contributing significantly to the rising costs within the medical indemnity sector.

According to a statement published on the AMA’s website, the Medical Defence Organisations (MDOs), which largely operate as member-based mutual entities, acknowledged the industry's growing unease. They shared global insurance market trends and emphasized the importance of maintaining open communication and collaborative efforts with the AMA to address systemic policy issues. Despite the need for cooperation, the constraints of competition law were noted as a limiting factor.

The organizations represented at the meeting included key industry players such as Avant, MDA National, Medical Indemnity Protection Society, MIGA, and Tego.

In its latest report, Avant informed Insurance News that their average rate increments have managed to remain below inflation for several renewal periods. Nevertheless, certain specialized fields have experienced sharp double-digit rate hikes due to specific claim frequencies and severities, affecting less than 1% of their membership.

Published:Wednesday, 4th Sep 2024
Source: Paige Estritori

Share this news item:

Insurance News

QBE Exceeds Profit Expectations with Strong Premium Growth

12 Oct 2025: Paige Estritori

Australian insurer QBE has reported a significant increase in net profit for the first half of fiscal 2025, reaching $997 million. This figure surpasses both the previous year's profit of $777 million and market estimates of $839.39 million. The impressive performance is attributed to robust premium growth in North America and international markets, coupled with lower-than-expected claims. - read more

Suncorp's Profit Rises by 8%, Plans A$400 Million Share Buyback

12 Oct 2025: Paige Estritori

Suncorp, a leading Australian insurer, has reported an 8% increase in full-year cash earnings, reaching A$1.49 billion for the year ending June 30. This performance surpasses analyst expectations of A$1.47 billion and is attributed to improved underlying insurance margins and a 16% increase in net investment returns, totaling A$766 million. - read more

IAG's Profits Surge by 91% as Premiums Continue to Rise

04 Oct 2025: Paige Estritori

Insurance Australia Group (IAG) has reported a significant 91% increase in net profit for the first half of the fiscal year, reaching $778 million. This substantial growth is attributed to favourable weather conditions and strategic business operations. Despite a general easing of inflationary pressures, IAG's CEO, Nick Hawkins, has indicated that insurance premiums are expected to continue rising, albeit at a slower pace. - read more

Click for more Insurance News

Trades Insurance Articles

What Types of Insurance Does Every Australian Tradie Need?

Public liability insurance is a type of cover that protects businesses and their owners from the financial risks of liabilities that may occur due to damage or injury to a third party. For tradies in Australia, this insurance is crucial due to the nature of their work environment. Working on various sites and handling different tasks increases the likelihood of accidents happening, which makes this type of insurance not only relevant but essential. - read more

Why Tradies Need Tailored Insurance Coverage: A Comprehensive Guide

In Australia, a 'tradie' is a commonly used term for someone working in the trades, such as plumbers, electricians, builders, or carpenters. Tradies play a vital role in maintaining and improving our homes, businesses, and infrastructure. - read more

How Specialized Insurance Safeguards Australian Tradespeople

Specialized insurance for tradespeople is a form of tailored insurance coverage designed specifically to meet the unique needs and risks that professionals in various trades encounter. This includes trades such as electricians, plumbers, carpenters, and other similar occupations. - read more

Dictionary

Replacement Cost

noun

The amount it would cost to replace or rebuild an insured asset with one of similar kind and quality, without depreciation.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.