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When Captive Insurance Falls Short For Medical Professionals
Insurance for Medical Professionals
In the 1980s, many businesses were challenged with obtaining some types of commercial insurance coverage. Several solutions entered the scene, including captive insurance. According to the Insurance Information Institute, “A captive is a special type of insurance company set up by a parent company, trade association or group of companies to insure the risks of its owner or owners.”
Healthcare organizations found captive insurance a very attractive option to cover their medical malpractice risks. However, this cost-control strategy is starting to unravel as many reinsurers who back these captives are starting to rebel. Reinsurers are seeing an increase in the frequency of severity for typical medical practice claims, and tired of absorbing severe losses caused by negligent or rogue physician behavior.
While in the past, reinsurers may have been offsetting losses by business reserves or profits in other lines to support underwriting at a loss, today, they are rethinking that strategy. In fact, many are starting to make changes in either pricing or limits at renewal. In fact, what keeps them up at night is the litigious nature of batch claims, causing them to look for rate and higher retentions.
Where does this leave the individual physician? Perhaps out in the cold should the reinsurer reconsider their relationship with the healthcare organization. Think that could never happen? Think again, because reinsurers are starting to push back at renewal time. But there is something physicians can do to protect themselves — professional liability insurance for medical professionals from XINSURANCE.
XINSURANCE is powered by Evolution Insurance Brokers, an insurance brokerage backed by the strength of Prime Insurance Company, an excess and surplus lines company. XINSURANCE provides customized specialty insurance for ever-changing risks and liability issues, including malpractice, Professional Liability, D&O, Commercial General Liability, and more.
XINSURANCE offers flexible underwriting, risk management expertise, and outstanding claims results for difficult risks, with consideration for good risk management practices. We’ll even defend you in the event you are named in an incident, claim or lawsuit.
Now’s the time to put XINSURANCE behind you. Learn more today at our insurance for medical professionals page.