Industry stalwart John Trowbridge has resigned as Chairman of Perth-based MDA National following the failure of its proposed merger with the Medical Defence Association of SA (MDASA) and its Medical Insurance Group (MIGA).

Mr Trowbridge – a former executive member of the Australian Prudential Regulation Authority and Chairman of the Federal Government’s Natural Disaster Insurance Review – chaired the steering committee for the merger announced in March.

He was last week appointed chairman of the life insurance and advice working group established by the Association of Financial Advisers and the Financial Services Council.

MDA National mutual chairman Julian Rait has also stood down after 10 years on the board.

Their resignations follow a meeting of MDA National members on October 11 that rejected the merger.

MDASA members had voted for the proposal to create an insurer with annual premium and subscription revenue of about $115 million.

MIGA Chairman John O’Loughlin and CEO and MD Mandy Anderson issued a statement saying the two organisations will remain competitors in the medical indemnity market.

They say MDA National approached them with the merger proposal and the outcome is disappointing.

Last month Australian Medical Association WA President Michael Gannon raised concerns about the merged business’ head office being in Adelaide and an inability to guarantee savings for MDA National members.