By Simon Kayll, Chief Executive
The subscription rate that MPS has to charge private obstetricians is becoming ever more expensive due to the increasing uncertainty of the future cost of providing protection for obstetric risk on an occurrence basis. Recognising the concern this is causing, MPS is introducing a new choice in professional protection for private obstetricians and gynaecologists who manage pregnancies after 24 weeks’ gestation.
The challenges of obstetric claims
Determining obstetric risk poses a considerable challenge, both in accurately predicting future trends and keeping subscriptions affordable, whilst at the same time protecting MPS’s mutual fund against the potential for a significant deterioration in claims involving catastrophic neurological birth injuries.
The length of time between a birth injury and the settlement of an obstetric claim can be 20 or even 30 years (compared to the average of five years for non-obstetric claims). This delay has a substantial impact on the final value of the claim, particularly if there has been a dramatic and unforeseen change in compensation culture, meaning past subscriptions prove to be inadequate to meet the final cost of obstetric claims.
As a result, providing protection on an occurrence basis for obstetric claims is becoming increasingly unsustainable and the cost of protection is likely to continue increasing.
Introducing claims-made protection
With these challenges in mind, MPS is now offering private obstetricians and gynaecologists a choice between our existing occurrence-based protection and our new claims-made protection.
The membership subscription for the first year of claims-made protection is currently R176,677.
Whilst both options are underpinned by the flexibility of discretion, important differences exist between the two types of protection we are offering. With claims-made protection subscription rates are lower in the early years but will increase over time. Members will also need to put additional arrangements in place if they decide to leave MPS or retire.
Further information (including details on the limits of indemnity) and details about how to apply can be found at www.mpsclaimsmade.org. Members can opt for claims-made protection now, even if they are mid-way through their membership year.
Rest assured, whichever option is chosen, members will continue to receive the high quality service, support and expertise for which MPS is renowned.