Page 4148 - Week 13 - Thursday, 6 December 2007
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ACTIA is currently recruiting staff to assist with the implementation of the key recommendations of this report. In addition, the Authority has continued to promote good risk management practices by organising lunchtime meetings for risk managers, covering topics of interest and sponsoring and conducting risk management training courses;
(2) ACTIA has been aware of the need for better risk management for some time, and has supported a number of initiatives over the years with all agencies to improve risk practices.
(1) Aside from the engagement of the above firm for advice, all work on these initiatives has been by existing staff in ACTIA and the agencies, and has not incurred extra cost for the Government.
(2) All agencies have been involved.
(3) Risk management strategies cannot be seen as having a finite objective, but include programs and procedures involving constant and continuous improvement in reviewing existing practices and the adoption of new practices to achieve better outcomes. At this stage, ACTIA envisages that all risk management initiatives will be met from within its existing budget.
Health—medical indemnity insurance
(Question No 1756)
Mrs Burke asked the Treasurer, upon notice, on 13 November 2007:
(1) In relation to the increasing costs of medical indemnity insurance carried by ACT Health with the Australian Capital Territory Insurance Authority, how long has the Authority taken responsibility for this insurance and on what basis does it assess contingent liabilities;
(2) If there has been or might be in the future an increase in health indemnity insurance payments from the Authority to ACT Health, who is the underwriter or who is the re-insurer;
(1) What is the increase in premiums likely to be for the 2007-08 year based upon the processed claims to date;
(2) What areas of the ACT budget will be affected by the escalation of medical indemnity payments.
Mr Stanhope: The answer to the member’s question is as follows:
(1) The Australian Capital Territory Insurance Authority has had responsibility for this insurance since 1 July 1997.
The medical malpractice liabilities are derived by the Authority’s actuaries from open claims and incidents with estimates of their expected cost. The actuaries use models to determine the number of incidents that will emerge as claims and their corresponding ultimate cost and the further claim development expected on open claims and their ultimate cost. Different models are used for large and small claims, and all projections are discounted and inflated in accord with actuarial and accounting standards. The Authority’s liabilities are not contingent, but are based on sound cost estimation procedures, as outlined above.
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