Juta’s MedicalBrief has provided an update on developments concerning medical indemnifier EthiQal, which was part of Constantia Insurance Company Limited (CICL), which went into liquidation on 14 September.
Read: Constantia Insurance goes into final liquidation
It said EthiQal has moved out of CICL into a new entity backed by Christo Wiese’s Titan group of companies within a cell captive of Yard Insurance. The report quoted from a statement by the South African Society of Obstetricians and Gynaecologists to its members.
EthiQal is the second-largest medical indemnifier in South Africa after London-based Medical Protection Society.
Titan is Wiese’s private investment arm, with significant interests in the retail, industrial supply, property, food manufacturing, wellness and financial services industries.
According to the MedicalBrief report:
- The cell captive will be capitalised with significant cash, more than sufficient to cover the expected solvency capital requirements (SCR). The agreement is to maintain an SCR near 1.2x the regulatory requirement.
- Lloyd’s of London will remain the reinsurer.
- EthiQal is offering additional cover, at no charge, to help doctors who have been affected by the Constantia liquidation.
- New policies are being issued and will be effective from 1 October.
Earlier in September, MedicalBrief quoted Wiese as saying that one of his companies, Titan Equity Funding, had “committed a substantial amount of capital to establish a new stand-alone company for EthiQal (New EthiQal). With Titan’s backing, New EthiQal would offer current EthiQal policyholders a new policy through a licensed insurer whom Titan was in negotiations with – on substantially the same terms as their existing one.”
According to the report:
- Once accepted, the new policy would be covered from 1 October, so there would be no gap in cover.
- The benefits, terms and conditions would remain substantially the same, with some adjustments to the occurrence-based product.
- Policyholders’ premiums would remain the same, unless an increase was implemented when the policy was renewed.
