Fed: World's largest medical indemnity company exits market

AAP General News (Australia)
12-13-2001
Fed: World's largest medical indemnity company exits market

Australia's medical indemnity crisis has deepened, with the withdrawal of the world's
largest insurer, St Paul.

St Paul's announced it will exit the medical malpractice business because it's no longer viable.

Australian Medical Association vice president TREVOR MUDGE says the litigation system
with its huge payouts is scaring off the insurers.

Dr MUDGE says the disturbing reality is that some medical procedures in Australia are
now virtually uninsurable -- including obstetrics, neurosurgery and orthopaedics.

Meanwhile, one of Australia's largest medical indemnity insurers has announced an increase
in premiums for next year of more than 50 per cent in some cases.

United Medical Protection, which insures 70 per cent of New South Wales doctors, blames
the September 11 terrorist attacks, the HIH collapse, high reinsurance costs and the downturn
in the investment market for the price hike.

AAP RTV eg/daw/pc/rp

KEYWORD: INDEMNITY (CANBERRA)

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