Thanks guys for your input. I too have been looking at this and investigating things a little. I see a block insurance program as something that cannot be compared to an individual insurance policy. In an individual policy, where the physio is named as 'The Insured', the underwriter is providing a unique policy for that person. They are reinsuring the risk of that policy being activated in the result of a claim. I know that Physiosure does this for every single one of their policies so that if there were many claims all at the same time it would not affect their business and therefore their customers security.

In a block program it seems that the company getting the block is making a call on the risk exposure for their group as a whole i.e. the likelihood of a claim/s in say any 12 month period. They might then offer a level of cover to individuals based on that ability to pay. The actual 'reality' of this perceived level of cover is more likely their ability to pay that amount based on the maximum number of claims in their risk analysis for that period. A shortfall in that financial reserve could lead to insolvency if the number of claims are more than that in their risk analysis. I suppose the APA would then need to use member funds to cover the loss but if the loss was even more than the fund available then they too might become insolvent or bankrupt.

The whole thing seems like a 'to good to be true' scenario. I think the insurers know it is a way for them to make some cash on high volumes and if big claims are made then they walk away from the business leaving the group to find a replacement (not so easy if a large claims history exists). For my 2 cents worth it is a very precarious position for the APA to get themselves into and is one that members who value their APA should vito. Why risk it all for an insurer to make some $$. But then saving even $10 seems to be very much the Aussie way. Bah! Humbug!