Storm brews in SA’s medical malpractice insurance market
“A potential storm is brewing in SA’s medical malpractice insurance market. Local providers of medical malpractice insurance are unhappy that the biggest provider to the domestic medical fraternity, the UK-based Medical Protection Society (MPS), is not a licensed financial service provider in SA,” wrote Garth Theunissen in Financial Mail (27 May 2021).
*Jaco van der Sandt, CEO of health professions indemnity at the Professional Provident Society (PPS), said the fact that MPS is providing an insurance-like offering without being regulated as a financial services provider provides no safety net to SA medical professionals.
*Sean Riskowitz, CEO of Conduit Capital, whose subsidiary Constantia Insurance has a medical professional indemnity division, EthiQal, said almost all doctors with MPS are unaware that MPS is unlicensed and unregulated.
“MPS’s ability to simply pull out of the local market without regulatory consequences is precisely why it should be licensed. MPS should be subject to the same regulation and licensing requirements that all others in the medical malpractice insurance - and insurance industry in general - are required to adhere to,” said Riskowitz.