July 11, 2024 by matray

Coverys recently announced that Coverys Limited has received Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA) approval to commence underwriting, effective June 26, 2024. This approval enables the organization to expand its offerings in the London market, supporting Coverys’ global growth and diversification strategy.

Coverys Limited has also been approved for admittance to the National Association of Insurance Commissioners (NAIC) Quarterly Listing of Alien Insurers, effective July 1, 2024. A company’s presence on the Quarterly Listing allows a non-U.S. insurer to write excess or surplus lines business in all states on a non-admitted basis. Regulatory approval comes on the heels of AM Best assigning an Excellent Financial Strength Rating (FSR) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “A” (Excellent) to Coverys Limited.

Coverys Limited is part of Coverys’ dedicated London platform, which includes both an insurance company and MGA operations (collectively “Coverys London”). To lead the newly expanded London operation, Coverys has appointed Stef Raftopoulos as CEO of Coverys London, reporting to Coverys CEO Joseph Murphy. In addition, chief underwriting officer Chris Brooking and finance director Michael Bell, who together with Raftopoulos bring more than 85 years of combined global insurance experience to the team, will assist Raftopoulos in heading the Coverys London operation.

Mike Sibthorpe is stepping down as CEO of Coverys London following the completion of the goals set for his tenure. Sibthorpe joined Coverys with the task of leading the reorganization of the London office and the development of an alternative platform to replace Coverys’ Syndicate 1975.

Building on the organization’s commitment to the London market, Coverys London will write a balanced portfolio of both medical liability insurance and healthcare reinsurance across a broad range of specialty lines in which Coverys has well-established product offerings and risk mitigation services. This includes an expansion of the services and flexibility previously provided through Coverys’ Syndicate 1975.

Joseph G. Murphy, President and CEO of Coverys, said, “With the creation of the Coverys London platform and regulatory approval, Coverys can expand options for risk-taking through the London marketplace while also providing the level of service and expertise our long-standing clients and partners have come to expect,” Murpphy said. “The expansion of our London platform is just one of the ways we are evolving our offerings across the markets we serve to further our mission to protect and support healthcare professionals worldwide.”

July 9, 2024 by matray

Matthew Germak, MD, MPH, will be the new vice president for patient safety at CRICO, the medical professional liability insurance program serving the Harvard medical community and its affiliate organizations. He will assume this role beginning July 15, 2024.

As vice president, Germak will report to Luke Sato, MD, senior vice president and chief medical officer of CRICO. In this capacity, he will have oversight of strategic and operational patient safety solutions for all CRICO subscribers. His responsibilities will include advancing CRICO’s patient safety strategy, convening clinical leaders, overseeing protected discussions of the AMC PSO, designing CRICO’s educational programs and supporting advanced clinical data analytics.

“Matt is a respected leader in patient safety and highly regarded by our insured network. I expect him to bring a fresh perspective and insight to our team, allowing us to better address the quality and safety challenges faced by our community,” said Mark E. Reynolds, CRICO president and chief executive.

Germak joins CRICO with extensive experience in patient safety. During the last four years, he has been Beth Israel Lahey Health Primary Care’s (BILHPC) first chief quality and safety officer and has been a primary care physician for eight years at BILHPC – Wellesley Family Medicine. Matt also currently serves as BILH’s principal investigator in CRICO’s Ambulatory Safety Net Program.

“We are thrilled to have Matt join us as VP of Patient Safety, as he’s been working with CRICO as our Medical Director of Primary Care since 2022,” Sato said. “The combination of his experience as a clinician and achievements in healthcare quality and safety make him a perfect fit for our organization and our subscribers.”

June 20, 2024 by matray

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of ProAssurance Group. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the existing indicative Long-Term Issue Credit Ratings (Long-Term IR) of ProAssurance Corporation (PRA) (headquartered in Birmingham, AL). The outlook of the Credit Ratings (ratings) is stable. All companies are indirect subsidiaries of PRA. (See below for a detailed listing of subsidiaries and indicative Long-Term IRs.)

The ratings of ProAssurance Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The group’s balance sheet strength assessment remains in the strongest range reflective of its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as quality of investments, adequate liquidity and strength of reserves. Loss reserve development trends over the prior 10 calendar and accident years have been mixed, driven in part by adverse development reported by the NORCAL subsidiaries, the development associated with a large national healthcare account and the emergence in 2023 of adverse development on the workers compensation line of business, reflecting the impact of rising medical severity.

The ratings also consider ProAssurance Group’s operating performance, which remains adequate, despite some deterioration over the past five-year period. The group’s operating results were impacted by the large national healthcare account’s non-renewal and the challenging loss environment in the specialty property/casualty segment’s healthcare professional liability and workers compensation segments, reflecting ongoing significant increases in average claim costs. Operating performance results and profitability in 2023 and through the first quarter of 2024 were bolstered by net investment income following the reallocation of investments and the continuation of higher yields. The ratings also consider the group’s national market position as one of the leading medical professional liability insurers in the United States with its breadth of product offerings across multiple disciplines, and geographic diversification. The ratings also recognize the group’s developed ERM framework and risk management capabilities across the organization.

The ratings also benefit from the financial flexibility afforded by PRA, the ultimate parent via access to the capital markets. PRA’s financial leverage is modest with adequate interest coverage, holding a significant amount of cash and short-term investments outside the insurance operations, which are available for use without regulatory approval or restriction. However, surplus growth has been limited over the most recent five-year period due to significant payments of dividends to PRA, which the parent has utilized for company stock repurchases and payment of shareholders’ dividends, and unrealized capital losses partially offsetting profitability. Management continues to remain committed to maintaining capital strength at its rated entities at levels commensurate with their ratings.

The stable outlooks reflect AM Best’s expectation that the group will maintain its strongest level of balance sheet strength assessment, supported by effective capital management, while ongoing initiatives implemented by management will maintain stable operating performance, supported by its favorable business profile.

Negative rating actions may occur if the group’s loss experience continues to impact underwriting profitability negatively and leads to further deterioration in operating performance trends. Negative rating action may also occur if the group's balance sheet strength weakens, which could result from deterioration of risk-adjusted capitalization or further adverse reserve development in its workers compensation or medical professional liability books from rising claims frequency or severity, or changes in regulatory, legislative and judicial actions. While unlikely in the near term, positive rating actions may occur following a positive trend in operating performance metrics that outpaces the group’s peers and materially contributes to surplus growth.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with stable outlooks for the following members of ProAssurance Group:

• ProAssurance Indemnity Company, Inc.
• ProAssurance Specialty Insurance Company
• Medmarc Casualty Insurance Company
• ProAssurance Insurance Company of America
• ProAssurance American Mutual, A Risk Retention Group
• Allied Eastern Indemnity Company
• Eastern Advantage Assurance Company
• Eastern Alliance Insurance Company
• NORCAL Insurance Company
• NORCAL Specialty Insurance Company
• Medicus Insurance Company
• FD Insurance Company
• Preferred Physicians Medical Risk Retention Group, a Mutual Insurance Company

The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:

ProAssurance Corporation— -- “bbb+” (Good) on senior unsecured debt -- “bbb” (Good) on senior subordinated debt -- “bbb-” (Good) on preferred stock

June 20, 2024 by matray

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of ProAssurance Group. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the existing indicative Long-Term Issue Credit Ratings (Long-Term IR) of ProAssurance Corporation (PRA) (headquartered in Birmingham, AL). The outlook of the Credit Ratings (ratings) is stable. All companies are indirect subsidiaries of PRA. (See below for a detailed listing of subsidiaries and indicative Long-Term IRs.)

The ratings of ProAssurance Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The group’s balance sheet strength assessment remains in the strongest range reflective of its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as quality of investments, adequate liquidity and strength of reserves. Loss reserve development trends over the prior 10 calendar and accident years have been mixed, driven in part by adverse development reported by the NORCAL subsidiaries, the development associated with a large national healthcare account and the emergence in 2023 of adverse development on the workers compensation line of business, reflecting the impact of rising medical severity.

The ratings also consider ProAssurance Group’s operating performance, which remains adequate, despite some deterioration over the past five-year period. The group’s operating results were impacted by the large national healthcare account’s non-renewal and the challenging loss environment in the specialty property/casualty segment’s healthcare professional liability and workers compensation segments, reflecting ongoing significant increases in average claim costs. Operating performance results and profitability in 2023 and through the first quarter of 2024 were bolstered by net investment income following the reallocation of investments and the continuation of higher yields. The ratings also consider the group’s national market position as one of the leading medical professional liability insurers in the United States with its breadth of product offerings across multiple disciplines, and geographic diversification. The ratings also recognize the group’s developed ERM framework and risk management capabilities across the organization.

The ratings also benefit from the financial flexibility afforded by PRA, the ultimate parent via access to the capital markets. PRA’s financial leverage is modest with adequate interest coverage, holding a significant amount of cash and short-term investments outside the insurance operations, which are available for use without regulatory approval or restriction. However, surplus growth has been limited over the most recent five-year period due to significant payments of dividends to PRA, which the parent has utilized for company stock repurchases and payment of shareholders’ dividends, and unrealized capital losses partially offsetting profitability. Management continues to remain committed to maintaining capital strength at its rated entities at levels commensurate with their ratings.

The stable outlooks reflect AM Best’s expectation that the group will maintain its strongest level of balance sheet strength assessment, supported by effective capital management, while ongoing initiatives implemented by management will maintain stable operating performance, supported by its favorable business profile.

Negative rating actions may occur if the group’s loss experience continues to impact underwriting profitability negatively and leads to further deterioration in operating performance trends. Negative rating action may also occur if the group's balance sheet strength weakens, which could result from deterioration of risk-adjusted capitalization or further adverse reserve development in its workers compensation or medical professional liability books from rising claims frequency or severity, or changes in regulatory, legislative and judicial actions. While unlikely in the near term, positive rating actions may occur following a positive trend in operating performance metrics that outpaces the group’s peers and materially contributes to surplus growth.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with stable outlooks for the following members of ProAssurance Group:

• ProAssurance Indemnity Company, Inc.
• ProAssurance Specialty Insurance Company
• Medmarc Casualty Insurance Company
• ProAssurance Insurance Company of America
• ProAssurance American Mutual, A Risk Retention Group
• Allied Eastern Indemnity Company
• Eastern Advantage Assurance Company
• Eastern Alliance Insurance Company
• NORCAL Insurance Company
• NORCAL Specialty Insurance Company
• Medicus Insurance Company
• FD Insurance Company
• Preferred Physicians Medical Risk Retention Group, a Mutual Insurance Company

The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:

ProAssurance Corporation— -- “bbb+” (Good) on senior unsecured debt -- “bbb” (Good) on senior subordinated debt -- “bbb-” (Good) on preferred stock

June 11, 2024 by matray

Below are some headlines and article synopses from the June 2024 issue of Medical Liability Monitor. To read the articles in their entirety, please subscribe today.

MPLI Underwriting Loss Widens, Performance Uneven Among Carriers
The U.S. medical professional liability insurance (MPLI) market’s underwriting loss increased significantly in 2023. Pricing trends remain positive, but it remains uncertain whether MPLI specialists can move toward breakeven underwriting results and bolster returns on capital amid market competition and ongoing loss-cost volatility tied to litigation risks …

AM Best: MPL Segment Underwriting Slips, Profitability Buoyed by Net Investment Income
Premium growth for a composite of medical professional liability (MPL) insurance companies moderated to 3.6% in 2023, but overall financial results were bolstered by favorable net investment income, according to a new AM Best Market Segment Report. The initial premium growth was spurred by price firming after a prolonged period of soft market conditions and challenging industry dynamics that dampened demand …

Colorado Reaches Compromise to Preserve, Increase Damage Caps
Healthcare interests, trial attorneys and lawmakers hammered out compromise legislation last month that will raise Colorado’s cap on noneconomic damages for medical liability claims. As a result of the compromise bill, the Colorado Trial Lawyers Association will withdraw its pending 2024 ballot initiatives to completely eliminate the state’s caps on recoverable damages and pierce peer review confidentiality. Coloradans Protecting Patient Access — a coalition of hospitals, physician groups, liability insurance companies and business organizations — will also retract its ballot initiatives to limit the amount of money trial lawyers can make from medical liability lawsuits. Gov. Jared Polis signed the bill into law on June 3 …

NH Lawmakers Raise Caps on Wrongful Death Loss of Consortium
The New Hampshire Legislature last month sent a bill to Gov. Chris Sununu that would increase the state’s damage caps for wrongful death loss of consortium involving spouses, parents and children. Senate Bill 462 would raise the cap for the loss of “the comfort, society, and companionship of the deceased” for a spouse from $150,000 to $500,000, and for the loss of a parent or a child from $50,000 to $300,000. Gov. Sununu has not taken a public stance on the legislation but is expected to sign it …

MPL Insurance Professionals Convene in Washington, DC, to Collaborate, Solve Problems, Move Industry Forward
The Medical Professional Liability (MPL) Association hosted its Annual Conference in Washington, D.C., from May 8-10. More than 450 attendees assembled at the Omni Shoreham Hotel to hear from more than 25 speakers representing the MPL, healthcare and insurance industries. Following are some highlights from the educational sessions at this year’s MPL Association Annual Conference …

NY Gov. Rescues State Medical Indemnity Fund, Future Solvency in Doubt
New York Gov. Kathy Hochul last month earmarked an additional $58 million for the state’s Medical Indemnity Fund as part of her updated financial plan for this year. The MIF was created in 2011 to provide a funding source for the future healthcare costs of “qualified plaintiffs,” as defined by law, who suffered birth-related neurological injuries due to medical malpractice during a delivery admission. The additional money ensures the program will continue through the remainder of this year. It also allows the program to accept new enrollees in the short term …

Subscribe today to get this issue (as well as the 2023 and 2024 Annual Rate Survey at no additional cost).

June 11, 2024 by matray

DOXA Insurance today announces the acquisition of CPH Insurance, a Chicago-based specialty managing general agent (MGA) providing professional liability products for mental health, allied health and healthcare professionals.

“We are pleased to partner with CPH Insurance, an organization with vast specialized expertise in allied health. Everyone at DOXA looks forward to working with the team at CPH Insurance as they continue to grow and offer new solutions to allied health professionals,” said Matt Sackett, CEO and co-founder of DOXA.

Established in 2000 by founder and president Phil Hodson to specifically serve the mental health sector, CPH Insurance provides competitively priced, timely insurance products to over 250,000 insureds across the U.S.

DOXA will continue to support CPH Insurance as it continues to nurture its existing book of business and continues introducing new products targeted to suit the unique needs of the organization’s clientele.

The transaction closed on Jun 7, 2024.

June 6, 2024 by matray

Integris Group recently announced the promotion of Christina Canales-Perry, JD, to vice president of claims.

Canales-Perry joined Integris in 2023 as the director of claims. During her tenure, Canales-Perry implemented revised litigation guidelines, introduced a new process for legal bill review and has fostered a close partnership with the company’s defense panel.

“Through Christina’s leadership and collaboration, the company has benefited from significant improvements in our evaluation of claims and the strengthening of our defense strategies,” said Kirk Tweedy, Integris Group chief operating officer. “Providing our policyholders with exceptional protection and support is core to our company mission statement, and we look forward to Christina’s continued contributions in this new role.”

Before joining the Company, Canales-Perry was a partner at Morrison Mahoney LLP, specializing in the defense of medical professional liability claims. Prior to that, she served as a judicial clerk to the judges of the Connecticut Superior Court, as well as Judge Stuart Bear and Judge Thomas West of the Connecticut Appellate Court.

Canales-Perry earned her Juris Doctor at the University of Connecticut School of Law and completed her Bachelor of Arts degree at Boston University.  

May 30, 2024 by matray

The Doctors Company, part of TDC Group, announced today that it has now distributed more than $175 million in Tribute Plan awards to almost 14,000  members. Created in 2007, the Tribute Plan rewards retiring doctors for their loyalty and dedication to superior patient care. The highest individual award to date is $264,808.

"The Tribute Plan is tangible proof of our mission to advance, protect and reward the practice of good medicine," said Richard E. Anderson, MD, FACP, chairman and CEO of The Doctors Company and TDC Group. "I'm pleased that in our recent survey of members, 90% recognized the importance of Tribute and 90% expressed satisfaction with our unmatched benefits."

Backed by the financial strength of $7.3 billion in assets and $2.8 billion in member surplus, the millions of dollars that are in Tribute accounts today come from the capital of the company, not from premiums, and Tribute payments do not affect The Doctors Company's ongoing dividend program.

May 24, 2024 by matray

ProAssurance Corp. announced at its annual meeting of shareholders on May 22 that shareholders had elected new directors Richard J. Bielen, CPA, and Staci M. Pierce, JD, and re-elected directors Bruce D. Angiolillo, J.D. (chairman), and Samuel A. Di Piazza, Jr., CPA, to serve three year terms expiring at the company's 2027 annual meeting. The company's board of directors now consists of 10 members, down from the previous 12.

Shareholders also approved the ProAssurance Corp. 2024 Equity Incentive Plan and ratified the selection of Ernst & Young, LLP as the independent auditing firm for the fiscal year ending Dec. 31, 2024. Acting on matters related to compensation, shareholders approved, on an advisory basis, the compensation of named executive officers. According to ProAssurance, all proposals on the ballot were approved by a substantial supermajority of votes cast.

Bielen is the president and chief executive officer of Protective Life Corp. He brings more than 35 years of experience in various executive roles in the financial services industry.

Pierce is the chief executive officer at Action Resources, a transportation and environmental services company headquartered in Birmingham, Ala. She brings more than eight years of executive and leadership experience in the transportation and environmental services industries. She also spent five years as a practicing attorney.

"ProAssurance looks to its board of directors for a diversity of viewpoints, backgrounds, and experience, among other skills," said Ned Rand, ProAssurance Corp. president and chief executive officer. "With the addition of Rich and Staci, our board is even better positioned as a resource as we work to achieve our objectives in our core lines of insurance - medical professional liability and workers’ compensation.”    

May 22, 2024 by matray

Matthew L. Perkins, MD, of Smyrna, Tenn., became the chair of the State Volunteer Mutual Insurance Company (SVMIC) Board of Directors on May 14, 2024. An internal medicine physician and pediatrician, Perkins has spent 16 years on the SVMIC Board, having previously served as treasurer and vice chair.

“I am honored to lead the board of SVMIC,” Perkins said. “I look forward to working with my fellow board members and management to continue building on the strong foundation laid by Dr. Francis serving the physicians of the southeast.”

Perkins replaces outgoing board chair, Hugh Francis III, MD, of Memphis, who held the role since 2015 and will remain as chair emeritus. Francis has served SVMIC in various leadership positions since 1994, including 27 years on the board.

Katrina M. Hood, MD, of Lexington, Ky., is the new vice chair of the SVMIC Board of Directors. A pediatrician who has been on SVMIC's board since 2009 and previously held the position of secretary; Hood has served on various committees of the board since 2006.

Craig A. Myers, MD, of Knoxville, Tenn., is the new secretary of the SVMIC Board of Directors. Myers is an obstetrician-gynecologist who has served on SVMIC's board since 2021 and has held positions on SVMIC committees since 2007.

Chad T. Couch, MD, MBA, of Bristol, Tenn., continues as the treasurer of the SVMIC Board of Directors, a role he has held since 2022. Couch has been on SVMIC's board since 2008 and has served on its committees since 2006.

“We are thrilled to welcome the new leadership of our board of directors,” said John H. Mize, FCAS, MAAA, SVMIC chief executive officer.  “Their impressive backgrounds, innovative approaches, and experience with SVMIC's leadership align perfectly with our vision and mission. We also extend our heartfelt gratitude to Dr. Hugh Francis III for his unwavering commitment and leadership as chair and are grateful that he will continue to serve SVMIC on the board of directors."