Another international insurer quits SA medical risk market
JUNE 7TH, 2017
‘Our research indicates that the cause of malpractice
cases, and the need for improved risk management, arises throughout the
healthcare delivery chain. Doctors are not (generally) sued for clinical
errors, but for the perception of their treatment and their response in
the context of the treatment outcomes.
‘When the matters reach litigation stages, further
challenges arise with the relationship between doctor and patient and access to
records that were generated many years before. The solution has to
be founded in an integrated risk management solution,’ said
Von Widdern.
female surgeon with her surgical team on background
South African medical practitioners have been hit by the
sudden withdrawal by international insurer Chubb of medical
professional indemnity cover, reports MedicalBrief. This follows upon a
rash of withdrawals from the volatile medical risk market, as rocketing
premiums endanger specialist medicine, especially in the obstetrics and
gynaecology fields.
Chubb has advised doctors and allied healthcare
practitioners that no new business will be quoted from June 1, while extensions
will be offered only for professional renewing between June and end August.
This effectively means that those with Chubb cover will retain indemnity
protection until the end of their current policy and then will have to seek
cover elsewhere, while those with impending renewals will have to act urgently
to find an alternative insurer.
It follows on the withdrawal of other overseas-based medical
risk insurers, Marketform and St Paul, as well as
hospital underwriter Camargue, which is an agency of Mutual and
Federal. Chubb did not respond to a request for comment. Nor did SA’s largest
indemnity provider, the British-based discretionary mutual, the Medical
Protection Society (MPS).
Volker von Widdern, managing director of Ethiqal medical
protection, a product of SA’s Constantia Insurance, said it was ‘easy’ for
international entities to ‘cut and run’ when conditions became
tough.’Non-domiciled medical risk insurers take billions out of the local
market every year and are not subject to SA’s strict financial service
regulations in terms of solvency and financial transparency.’
Von Widdern said that the ‘dismay’ of medical
professionals insured by Chubb was ‘understandable’. ‘It is worth noting that
the cover provided by Chubb is on a “claims-made” basis. This means that these
policyholders have no run off cover for adverse events that were not reported
to Chubb in terms of their policy terms.’
‘MPS is a large UK based indemnity provider that is not
licensed under SA’s Financial Services Board rules has increased
premiums by 600% over the past five years, while local underwriters that
previously entered the medical market departed soon thereafter, creating
more financial strain and uncertainty for medical practitioners.’
Von Widdern slated the practice of some medical risk
insurers to ‘pick and choose’ medical practices to their liking. ‘The standard
insurance model of either withdrawing cover or increasing premiums (or both) in
periods of perceived high risk must be adapted in collaboration with the
practitioner community, so that a sustainable basis for providing
indemnity to practitioners is developed. For example, a substantial number of
SA’s obstetricians and gynaes are now underwritten locally by
ourselves through EthiQal, at substantially lower prices that were previously
available.
‘Our research indicates that the cause of malpractice cases,
and the need for improved risk management, arises throughout the healthcare
delivery chain. Doctors are not (generally) sued for clinical errors, but for
the perception of their treatment and their response in
the context of the treatment outcomes.
‘When the matters reach litigation stages, further challenges
arise with the relationship between doctor and patient and access to records
that were generated many years before. The solution has to
be founded in an integrated risk management solution,’ said
Von Widdern.''
Joseph Ana.
Africa Center for Clin Gov Research &
Patient Safety
@ HRI West Africa
Group - HRI WA
Consultants in
Clinical Governance Implementation
Publisher: Health and
Medical Journals
8 Amaku Street Housing
Estate, Calabar
Cross River State, Nigeria
Cross River State, Nigeria
Phone No.
+234 (0) 8063600642
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