A renewal in insurance cover for medical malpractice in Jersey has led to “an increase in premium costs” due to the “level and complexity of claims,” a Jersey Audit Office report on insurance has revealed.
The report, issued by Comptroller and Auditor General Lynn Pamment, further found that information on “current, potential and closed” claims is held on “complex” spreadsheets that “do not facilitate the provision of good management information.”
An actuarial review to determine whether the States of Jersey can insure its own medical malpractice risks is currently under evaluation, and its progression has been formally prioritised.
The Jersey Audit Office report explains: “In the context of the wider insurance market, where medical indemnity claims continue to increase, it is important for the States of Jersey to implement recommendations.
“This is crucial to mitigate future risks, including insurance risk, arising from medical malpractice.”
A recommendation calling for a review of claims information was made as far back as December 2020 but is still yet to take place, the report found.
Moreover, a “specific insurance management system” to enable improvements in claim information analysis has also failed to materialise despite a scheduled implementation date of 31 December 2024.
The report notes: “As a consequence, the States of Jersey do not have easily accessible data on which to take preventative action.
“Such action might reduce the incidence and/or impact of events that in the past have led to claims.”
It is, however, observed that “key performance indicators” have been developed and are monitored through six-monthly meetings with medical malpractice insurance brokers.
The increase in costs for medical malpractice insurance stands in contrast to a £2.4m reduction in money spent on “General Insurance” following a tender exercise in 2024.
The new premium saw the States of Jersey secure an “improved level of cover” for a reduced premium of £6.2 million, compared to the previously agreed £8.6 million.
New insurers were then appointed to “spread the risk” associated with a single provider.
However, insurance cover for medical malpractice has been deemed “more challenging,” with Ms. Pamment stating: “The most recent renewal led to an increase in premium costs whilst maintaining continuity of cover.
“Further work is required to address my recommendation to establish and set out future policies for insurance, self-insurance and the arrangements for funding.”
And elsewhere in the report it is stated that the procurement and implementation of an insurance management system – that would help, in part, to manage medical malpractice insurance risk – has been “delayed due to resource constraints” within the States of Jersey Digital Services team.
The report states: “Ministerial approval was received in November 2023 to procure a claims management system.
“A system provider was identified by way of a procurement exercise in 2025, but this action has not been finalised due to a reprioritisation of Digital Services projects across Government.”
The Comptroller and Auditor General called for a “systematic approach to identifying, documenting and managing existing and emerging insurable risks.”
Commenting on the findings of the report, she confirmed that “further work is required” to “improve the links between insurance risk and risk appetite.”
This includes “identifying and documenting existing and emerging insurable risks, and establishing more efficient and effective analysis of claims data to better manage insurance risk.”
