Fair American Insurance and Reinsurance Company will make changes to its Psychiatrists Professional Liability Program in the 4th Quarter of 2021, pending various state regulatory body approvals.
The company will make revisions under its Entity Coverage for this program, spurred on by recent actuarial and underwriting data, as well as a response to similar offerings from competitors within the market, most notably ProAssurance Indemnity Company, Inc. and that carrier’s Multi-Specialty Healthcare Professional Program.
Fair American’s revisions will primarily impact the carrier’s group policies, which the carrier notes represent a small portion of its overall book of business and stipulates that the overall rate impact will is expected to be minimal for its Psychiatrists Program. These changes can be expected to be implemented countrywide, including Arizona.
Fair American will realign the Percent of Sum of Each Insured’s Net Individual Premium table under its Entity Coverage to mirror that of ProAssurance’s. This will range from 15% to 5%, relative to the number of insureds on the policy. These changes are primarily intended to make pricing for this coverage more competitive, with the potential for a larger appetite and more accurate underwriting, as previous percentages ranged from 10% to 25%. Minimum premium for the coverage will also be changed to $1,000 for limits of $1 million/$3 million and $2,000 for limits of $2 million/$6 million.
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