AUDITOR-GENERAL'S REPORT

398 Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (17 November 2008). With respect to the report of the Auditor-General 2007-08—part B, volume 4, page 1027—Why did medical malpractice claims increase by $46 million in 2007-08?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): I have been provided the following information:

The outstanding position of medical malpractice claims for SAICORP Insurance Fund 1 (both current and non-current) as at 30 June 2008 changed by an amount of $45.7 million relative to 30 June 2007.

This increase is a combination of new claims reported during the year and existing claims that increased in value during the year. Some of the increase in the value of claims was attributable to a revaluation using revised discount factors and prudential margins, as well as an increase in provisions for claims incurred but not reported.