Financial information and corporate governance
Because we are owned and governed by the membership, we take decisions that support members’ needs
You can be secure in the knowledge that MPS is financially strong. This is reflected in our Annual Report and Accounts.
We put the interests of members first. Because we are owned by and accountable to members, we take decisions that support member’s needs.
There are often long delays between an adverse incident occurring and the ultimate settlement of any subsequent claim – the average time-lag between an incident and the claim being reported to MPS is about three years with further delays before full resolution can be achieved.
It is of paramount importance to MPS members and their patients that MPS’s financial position is strong enough to withstand the uncertainty caused by these delays – particularly as the value of claims can inflate at a rate significantly in excess of retail price inflation.
MPS must always ensure it has sufficient funds in its reserves to account for claims it is currently handling, as well as any potential future claims that may arise. This means, each year, we carefully assess our financial situation to ensure we can provide for these eventualities, and can continue to protect members both now and in the future.
At the end of 2011, MPS had more than £1.7 billion in total assets available to meet claims – these assets are sufficient to meet both reported and potential future claims – a fully funded position. There are many factors which can affect future claim values and as a matter of prudence, MPS holds reserves to cover these factors.
MPS exists solely for the benefit of members and is fully accountable to them
Transparency is a key aspect of accountability to which we fully subscribe. We publish clear information about our financial position; directors’ remuneration is reported in our Annual Report and Accounts and is set by the Remuneration Committee of Council.
The Combined Code prepared by the Committee on Corporate Governance sets out best practice for corporate governance and compliance with the Code is mandatory for listed companies. Although MPS is not a listed company, and therefore not obliged to comply with the Code, we have adopted its principles of best practice as set out in Section 1 of the Code, as far as they apply to us.
MPS exists solely for the benefit of members and is fully accountable to them.