Coverys Hires Cathy Donahue to be Chief Operating Officer
April 20, 2023
by
matray
Coverys recently announced the hiring of Cathy Donahue to be its chief operating officer. Reporting to Joseph Murphy, 
Coverys president and chief executive officer, she will oversee a wide range of functions and business units within Coverys, including claims, human resources, risk management and analytics, information technology, enterprise risk management, and diversity, equity and inclusion. Donahue has more than two decades of experience in the insurance industry.
“Cathy has deep expertise in effecting change and innovation across organizations by listening and engaging others,” Murphy said. “As a result of this collaborative approach, she is adept at operational efficiency, mitigating risk, ensuring compliance and strengthening overall quality across organizations. Coupled with Cathy’s operational strengths is her passion and belief in cultivating a purpose-led culture. She is an exemplary role model who truly aligns with our Coverys core values.”
Donahue most recently served as assistant vice president and chief administrative officer at The Hartford, where she oversaw the diversity, equity and inclusion strategy for its claims and operations division. Prior to that, she held senior operations roles at Chubb & Son, including vice president and managing director of Worldwide Surety Operations and operations manager for North America.
“I am delighted to join Coverys, a company known for driving growth and innovation in the medical professional liability insurance market,” Donahue said. “I look forward to collaborating with the team to execute our long-term strategic plan to bring sophisticated technology, risk-mitigation strategies, data intelligence and evidence-based processes to liability protection."
Sompo International Names Hyland President of North American Reinsurance
April 17, 2023
by
matray
Sompo International, a provider of commercial and consumer property and casualty (re)insurance, promoted Margaret 
Hyland to president of North America Reinsurance. Hyland now reports to Christopher Donelan, chief executive officer, Global Reinsurance, Sompo International Holdings Ltd.
“We are excited to see Maggie step into her new role given her wealth of leadership experience and strong relationships within the (re)insurance industry,” Donelan said. “Our ability to attract and develop the depth of talent on our team is one of our greatest strengths and we are confident Maggie has the reputation and expertise needed to take our business forward.”
Hyland previously served as the company’s executive vice president, head of North American Professional Liability Reinsurance at Sompo International. With more than 30 years of experience in the North American (re)insurance industry, she has held leadership positions with various companies including Allied World, CNA, Axis Capital and Willis Re. Hyland has a Master’s in Business Administration from the Gabelli School of Business at Fordham University and Bachelor of Arts in Literature and Speech from St. John’s University.
Medical Liability Monitor April 2023 issue highlights
April 11, 2023
by
matray
Below are some headlines and article synopses from the April 2023 issue of Medical Liability Monitor. To read the articles in entirety, please subscribe today.
New Mexico Avoids MedMal Insurance Crisis with Damage Cap Fix
The New Mexico Legislature threaded the needle last month and passed a bipartisan update to the state’s Medical Malpractice Act with just four days left in the 2023 session, averting what could have been a medical liability insurance crisis. Senate Bill 523, drafted in a compromise between trial lawyers and healthcare professionals, caps medical malpractice payouts for independent outpatient clinics — such as urgent care, ambulatory surgical centers and free-standing emergency rooms not hospital controlled — at $1 million, which they say will allow them to maintain medical liability insurance coverage and keep their doors open. Beginning in calendar-year 2024, the cap will adjust annually by the prior three-year average consumer price index. Two previous legislative attempts at fixing the damage cap for independent clinics stalled in committee earlier this year …
Vertical Integration Worsens Patient Outcomes, Increases Costs
Vertical integration within the healthcare delivery system should improve patient outcomes and shrink costs, in theory. When physicians work directly for hospitals, rather than in independent practices, there should be greater efficiencies, coordination and information sharing due to economies of scale. And indeed, the U.S. healthcare system has been headed in that direction for years, consolidating at a rapid rate. The number of doctors who have transitioned from working in independent practices to hospital employment has doubled during the past decade, and the trend looks to continue. But a new Harvard University study finds that in at least one representative area of medicine, gastroenterology, vertical integration is leading doctors to change the way they approach patient care — with consequent adverse effects on patient health and the cost of care. The problem lies in a system of financial reimbursements that incentivizes the wrong behaviors and addressing that issue may offer a solution …
Prior Authorization Toll Exceeds Alleged Benefits, According to AMA Survey
The approval process health insurers impose on medical services or prescription drugs is generating a toll that exceeds the purported benefits, according to a physician survey released last month by the American Medical Association (AMA). While health insurers claim that prior authorization requirements are used for cost and quality control, a large majority of physicians say authorization controls lead to unnecessary waste and avoidable patient harm …
Macroeconomic Conditions, Uncertainty Lead to a Mixed Year For MPL Insurers
Medical professional liability insurers’ direct written premium increased by 5.7% in 2022 to almost $6.7 billion, its highest level since 2006, but adverse macroeconomic trends persist. As has been the case since 2016, the composite continues to rely on investment performance to maintain its profitability as combined ratios remain above 100% and surplus continues to shrink …
Study Accuses P&C Insurers of Fabricating Social Inflation to Price Gouge
A new study of the property/casualty insurance industry, Inventing Social Inflation 2023, alleges commercial insurers have been misrepresenting their actual losses to justify “price-gouging” and push for further restrictions on the tort rights of American consumers. For the medical professional liability line of business, the study’s authors assert that “perhaps no commercial insurance policyholders have been victims of the industry’s manufactured economic cycle crises more than doctors.” They accuse medical malpractice insurers of misrepresenting their actual losses by 37% during the previous hard market to justify rate hikes and ramping up a similar strategy in 2019. The authors point to 2020 and 2021 rate hikes — when malpractice claims dropped precipitously due to COVID-19 physician immunities and closed court systems — as evidence premiums are not connected to actual loss data …
Subscribe today to get this issue (as well as the 2022 Annual Rate Survey at no additional cost).
21st Annual Advanced Forum on Obstetric Malpractice Claims
April 5, 2023
by
matray
June 27-28, 2023 | The Union League of Philadelphia, Philadelphia, PA
Hosted by the American Conference Institute, the 21st Annual Advanced Forum on Obstetric 
Malpractice Claims returns in June with curated content that will ensure that you stay current on the evolving standards of care, emerging theories of liability, and new defense strategies.
This year’s co-chairs include Joseph S. Picchi (Managing Stakeholder, Galloway, Lucchese, Everson & Picchi) and Daryl Zaslow (Shareholder, Eichen Crutchlow Zaslow, LLP). Obstetrics malpractice claims continue to be the most expensive within the medical malpractice arena. As medical science in the field of obstetrics continues to make innovative discoveries, develop rapidly changing advances in medical technology, and provide increased access to new information, there are higher demands on standards of care – unfortunately leading to higher areas of risk, and subsequently, higher malpractice claims. It is crucial that all parties involved in the obstetric malpractice continuum – medical professionals, risk managers, insurance professionals, plaintiff and defense attorneys – stay current on these latest developments as well as claims impacting this area of practice.
During this one-of-a-kind event, our unparalleled faculty of claims specialists, risk managers, medical experts – as well as an outstanding array of plaintiff and defense attorneys – will share their insights and provide practical guidance for addressing some of the most complex medical and litigation challenges.
To learn more visit http://bit.ly/3Zcskkw.
Save 10% with the Medical Liability Monitor promo code: D10-999-MLM
Online: http://bit.ly/3Zcskkw
Email: customerservice@americanconference.com
Phone: 1-888-224-2480
New York Regional Society of Plastic Surgeons Selects The Doctors Company as Exclusive Partner
April 4, 2023
by
matray
The New York Regional Society of Plastic Surgeons (NYRSPS) has chosen The Doctors Company, part of TDC Group, as the exclusively endorsed medical malpractice insurer for its members.
“We chose to endorse The Doctors Company because as an organization founded and led by physicians 
and owned by members, they share our commitment to address challenges faced today,” said Franziska Huettner, MD, PhD, FACS, and NYRSPS president. “As the largest insurer of plastic surgeons in the nation, The Doctors Company also has an unparalleled understanding of liability claims against our specialty.”
NYRSPS joins many of the most prestigious medical organizations, including the American Society of Plastic Surgeons and the New York State Society of Plastic Surgeons, which exclusively endorse The Doctors Company because of its physician focus, financial strength, and mission to advance, protect, and reward the practice of good medicine.
NYRSPS members are now eligible for a range of offerings from The Doctors Company, including competitive rates for medical malpractice insurance, and even greater savings if they’re affiliated with a Hospitals Insurance Company health system. As a member of The Doctors Company, NYRSPS members will also receive aggressive defense, expert patient safety tools and programs, access to the Section 18 New York State excess risk management program, and a range of coverage options for both physicians and advanced practice clinicians. Eligible NYRSPS members of The Doctors Company can benefit from the Tribute® Plan, which financially rewards doctors for their loyalty and commitment to superior patient care.
“Our new partnership with NYRSPS reflects TDC Group’s growing strength in the New York market,” said Tammy Clark, CPCU, senior vice president and regional operating officer, The Doctors Company. “Since expanding its presence in New York in 2017, TDC Group has grown to 21,674 New York physician members and $320 million in direct written premiums.”
AM Best Affirms Superior Financial Strength Ratings of Members of MedPro Group
March 30, 2023
by
matray
AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer 
Credit Ratings of “aa+” of the members of MedPro Group (MedPro) (headquartered in Fort Wayne, IN). These Credit Ratings (ratings) apply to The Medical Protective Company (Fort Wayne, IN), its affiliates: Princeton Insurance Company (Princeton, NJ); PLICO, Inc. (Oklahoma City, OK); Wellfleet Insurance Company (Fort Wayne, IN); and Wellfleet New York Insurance Company (Flushing, NY); as well as MedPro’s two reinsured affiliates, MedPro RRG Risk Retention Group and AttPro RRG Reciprocal Risk Retention Group (both domiciled in the District of Columbia). The outlook of these ratings is stable.
The ratings reflect MedPro’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The ratings also acknowledge MedPro’s robust capitalization, long-term operating performance and the significant market position it maintains in the medical professional liability (MPL) sector. Additionally, the ratings consider the group’s substantial distribution capabilities, prudent claims-handling philosophy and culture of maintaining a margin of safety. Furthermore, the ratings benefit from the explicit and implicit financial support provided by the ultimate parent, Berkshire Hathaway Inc. [NYSE: BRK A and BRK B], which includes reinsurance programs, investment opportunities and capital support.
Partially offsetting these positive rating factors are the inherent challenges associated with being a predominately monoline MPL insurer, particularly as they relate to price competition, changing market dynamics, potential changes in legislation (i.e., tort reform), increasing loss cost trends and regulatory risk. At the same time, AM Best recognizes the organization’s strong management team, broad premium base and jurisdictional diversity that mitigate these concerns.
Downward rating pressure may result from a significant decrease in risk-adjusted capitalization from an adverse earnings trend due to underwriting or investment losses. Downward rating pressure also may result should the group’s relationship with Berkshire Hathaway Inc. or National Indemnity Company change, which also would result in a diminution of the business profile.
The Doctors Company Announces $8.5 Million Member Dividend
March 29, 2023
by
matray
The Doctors Company announced today that it has approved a 2023 premium 
dividend of approximately $8.5 million, bringing the total of declared dividends to date to more than $455 million.
“We are proud to once again reward members with earned dividends. They are an important manifestation of both our mission to advance, protect and reward the practice of good medicine, and the outstanding outcomes achieved by our members,” said Richard E. Anderson, MD, FACP, chairman and CEO of The Doctors Company and TDC Group.
Dividends of up to 10% were approved by The Doctors Company Board of Governors for eligible members in the following states: Colorado, Florida, Idaho, Maryland, Michigan, Montana, North Carolina, Ohio, Virginia, Washington and Wyoming. Members of the American Academy of Otolaryngology — Head and Neck Surgery may also receive a dividend, depending on their eligibility.
Eligible members will receive this year’s dividend on their annual premium for policy renewals on or after July 1, 2023.
Don’t Miss the 21st Annual Advanced Forum on Obstetric Malpractice Claims
March 21, 2023
by
matray
The American Conference Institute announced that its 21st Annual Advanced Forum on Obstetric 
Malpractice Claims will happen June 27-28 at the Union League of Philadelphia. This year’s curated content will focus on evolving standards of care, emerging theories of liability and new defense strategies. Co-chairs for this year’s forum include Joseph S. Picchi, managing stakeholder at Galloway, Lucchese, Everson & Picchi, and Daryl Zaslow, a shareholder at Eichen Crutchlow Zaslow, LLP.
Obstetrics malpractice claims continue to be the most expensive within the medical malpractice litigation arena. As medical science in the field of obstetrics continues to make innovative discoveries, develop rapidly changing advances in medical technology and provide increased access to new information, there are higher demands on standards of care that dictate higher areas of risk. It is crucial that all parties involved in the obstetric malpractice continuum — medical professionals, risk managers, insurance professionals, plaintiff and defense attorneys — stay current on these latest developments as well as claims impacting this area of practice.
During this one-of-a-kind event, the forum’s faculty of claims specialists, risk managers, medical experts, and plaintiff and defense attorneys will share insights and provide practical guidance for addressing some of the most complex medical and litigation challenges in obstetrics.
To learn more and register, visit http://bit.ly/3Zcskkw. Save 10% with the Medical Liability Monitor promo code: D10-999-MLM.
million since 2020.
reducing fragmentation in the health care system. Congratulations to the following organizations: