Top 100 CEO Interviews
Issue No. 25 - October/November 2005
Top 100 Insurer’s clean bill of health
Old organisations are not supposed to be good at reinventing themselves, but when one succeeds, often it’s spectacular.
Enjoying several year-on-year increases of membership, Medical Insurance Group Australia has evolved from an old-fashioned mutual society to a full blown, national insurer serving the medical profession.
Medical Insurance Group Australia embraces two organisations: the Medical Defence Association of South Australia Limited and its offspring, Medical Insurance Australia Pty Ltd.
MIGA offers medical indemnity insurance and support for medical practitioners and medical students throughout Australia. It provides wider membership services including medico legal advice and support and risk management services.
MDASA Limited was formed in 1899. It is a doctor owned, mutual non-profit organisation. MDASA Limited has no shareholders, only its members, and was created for the sole purpose of supporting members in medico-legal matters.
Medical Insurance Australia Pty Ltd is a wholly owned subsidiary of MDASA Limited. MIA is a licensed general insurer regulated by the Australian Prudential Regulation Authority (APRA). It provides medical indemnity insurance to doctors and medical students throughout Australia.
Five years ago, MDASA had five permanent staff. Today, MIGA has 35 full-time employees.
Turnover has increased from $8.5 million to $35 million and the firm has 13% to 14% of the national market.
More importantly, the firm’s financial position has been reversed.
“Five years ago we were facing a virtual financial deficit of $27million,” says CEO Mandy Anderson, who has presided over what she estimates as a $50million turnaround achieved by an increase in premiums and greatly increased membership.
“The reform process began on about day two after I started,” Mandy says. “The board was very much on top of things.
“At the time we were still the mutual fund that had bee...
