I have often been caught up in the hunt for the lowest premium. It makes sense really, I mean, what else are we going to look at..It is all about the lowest cost, right? The one thing you can measure...Premium, premium, deductibles, the endorsements, who is included, what is the bottom line. We all are subject to the same habit, the tendency to quantify and measure, lowest premium, in our minds equals the best. If the low priced Carrier has a good story to tell, then all the better; Risk Management Graphics on a Web Site are compelling and a link to the claims department on the Web Site, maybe even an endorsement from a specialty association. We don't want to know much else. This decision of choosing a Liability Carrier doesn't seem to have long term ramifications.
More than A Certificate of Insurance
Do they have a certificate of insurance that my hospital will accept, do they have a single Risk Manager, Is this insurance Company investing in Risk Management Resources, do they have local as well as National access to data and resources, will they defend my claim and are they the least expensive solution for my medical malpractice insurance.
Choosing a Medical Malpractice Insurance Carrier
These are the questions that bring us to decisions. The lowest cost competitor often has some nuance that is worth taking a closer look, The solution is not an medical malpractice insurance company but rather a risk retention group, the company is not licensed in more than a couple of states, the company is a Trust, not an Insurance Carrier. Good Website Graphics do not define a smart, conservative Insurance choice.
We all, agents and physicians and industrial buyers of professional liability insurance for physicians must all take a much closer look at the product, the insurance concept. This is really not just about price. To pick an insurance Carrier based only on price is like picking a horse based on the color of the jockey's Bib. Insurance Companies are facing difficult times, We are fighting record casualties in the East and now Central Plain States, we are experiencing an interesting phenomenon: Insurance Companies, Capital Flush, low losses, low frequency of claims, good times of profit and low premiums.
These times are reversing. In the area of Employment Practices Liability, in California, premiums have increased by 50% in just one renewal year. Workers Compensation Premiums, after six years of reductions are..well remaining low but they are starting to enforce previously unenforced guidelines in underwriting. Medical malpractice Carriers are looking for other specialties, facilities and medical niches, (i.e. addiction treatment centers and retail clinics ) to find more premium to forestall the inevitable increased need for premium. in that slowly, surely, It is important to consider how a company is planning to grow. Reserves pay your future claims.
A stated amount or percent of liquid assets that an insurer must have on hand that will satisfy all claims from in-force insurance policies and other outstanding liabilities. Reserve limits are established by state regulatory agencies which calculate reserves as a percent of the totalpresent value of in-force insurance less the present value of futurepremiums to be received plus interest.
Decide which insurance company you are going with based upon the reserves. Premium growth, Investment Gains and diverse growth plans are paramount considerations for choosing a Carrier.