As 2020 draws to a close and we start thinking about what lies ahead in 2021, I want to remind and reassure you that MIGA is here to support you.
Many businesses around the country are struggling. As a society, we feel those ripple effects through the lives of the people we are connected with.
We recently released our 2020 Annual Review, which summarises our financial results and key business developments across the last year. We were very pleased to report a positive result in such a challenging year and I want to highlight what this means for you.
Modest profit result ($5.882m) despite a considerable fall in market interest rates
Our active management of claims resulted in lower than expected claims costs over the year.
Whilst interest rates were low and there was considerable volatility in investment markets worldwide, our investment returns were still relatively good. MIGA has an appropriately conservative investment strategy focused on long-term stability and management of balance sheet risk. This protects us well against significant market volatility and provides you with the security of knowing we are financially strong and well protected.
Reporting a profit is an important indicator to you of the financial security of your insurer.
Maintenance of our APRA capital ratio at 3.36
The capital ratio of insurers is a measure used by APRA to indicate the capital strength of an organisation and ultimately their ability to pay claims. MIGA’s capital ratio continues to be strong, steady and above the preferred operating range set by our Boards. Once the target capital level is reached (as we have consistently done), any surplus is directed by MIGA to improving benefits and services for members and clients, and maintaining premium stability and access to affordable medical indemnity insurance for our policyholders.
The strong capital ratio gives us great ability to withstand shocks and enables us to invest in the future of the company for your benefit.
Supporting our members and clients
Information – Rapid change in medical practice during COVID-19 placed greatly increased demand on our in house solicitors, from members in need of support or clarification. In addition to continuing to provide support, we created an extensive Q&A section on our website, as a ready resource for members and clients providing access to answers to the latest medico-legal and insurance questions.
Premium relief – With some members and clients effectively unable to work during the early stages of the pandemic, financial stress became an issue. For those significantly impacted, we introduced mechanisms to respond to their changing financial circumstances as a means of assisting them through the crisis. Our Financial relief package released in April 2020 was accessed by many members
Risk management – Acknowledging that COVID-19 restrictions prevented members and clients from fully completing their requirements in the Program we credited some members 10 points for the premium discount in the 2020/2021 year (the trigger was having completed the Program for the last 2 years).
We are fully committed to our role of supporting you in your practice and day to day work and appreciate the difficult year many of you have had. As challenging as the past year has been, it has also been an opportunity for us to demonstrate our value and importance as a partner for you. We hope we have given you support and confidence when you have needed it.
We encourage you to read our 2020 Annual Review at miga.com.au/about-us/publications
On behalf of everyone at MIGA, I wish you all the best for the Festive season. I hope you have a chance to rest, relax and recuperate and that 2021 will see a return to a more normal life for all of us.
Stay safe and best wishes.