Increased exposures have led to planned rate hikes scattered among medical professional liability carriers within the physician and nurse practitioner’s segment. Despite the seemingly never-ending specter of COVID-19, carriers have generally not noted any adverse impact on pricing as a result of the pandemic, though overall exposures and suspension of practices are continuing to vary wildly across state lines, making the long-term impact of the situation unclear.
ISMIE Mutual notes that it did implement rate increases in 2020 and 2021, while industry wide, rates across the physicians and hospitals and facilities segment increased consistently among its competitors as well. ISMIE notes that while it did implement rate increases on its renewal business, it also saw higher than historical averages in terms of policy holder retention.
The carrier has been particularly wary of emerging exposures as a result of the pandemic, particularly in the wake of increased telehealth initiatives as a result of the pandemic, and as such, has focused its risk management efforts on telehealth, as well as increasing its telehealth coverages. While the carrier has not seen an increase in physician-related claims as a result of the strain the pandemic has placed on physician care and resources, the carrier does note that this could easily change. Healthcare staffing firms in particular have been under a considerable strain.
The company offers coverages for locum tenens under ISMIE Indemnity, its excess and surplus lines platform. ISMIE also notes that while it is generally seeing positive trends in claims frequency, it’s not yet clear how the pandemic has influenced these numbers. However, nationally, it notes severity is near historic averages. Limits have also maintained stability. While most of the company’s written limits are $1M/$3M, it offers limits starting at $200,000/$600,000, up to $2M/$4M, relative to the policyholder state. It has not seen a significant demand for excess limits.
The Medical Protective Company’s tentatively planned 9.9% rate hike on its Multi-Specialty Healthcare Professionals product under its MedPro Provider Solutions, Inc. risk purchasing group (MPS RPG) is currently pending state action in California, and is slated to go into effect on June 1, 2022, if granted approval from state regulators. In regulatory filings with state regulators, MedPro asserts that it is “proceeding under the assumption that the medical professional liability market is in a state consistent with that prior to that of the COVID-19 pandemic,” though the carrier also notes that as many of its insureds have been providing essential medical services during the pandemic, it has created the potential for new exposures and increased risk of loss.
The Doctors Company kicked off 2022 with an overall 6.5% rate increase for new business in Texas under its Physicians, Surgeons and Ancillary Healthcare Providers Professional Liability Program, alongside a planned 6.5% rate hike for renewal business, scheduled to go into effect for existing policy holders on April 1. The company holds a substantial amount of written premium in the Lone Star State, clocking over just under $38 million, with this rate increase expected to impact its 5,573 policyholders. While the carrier achieved an overall increase, some class specialties saw adjustments downward related to less overall exposure and potential claims severity.
The carrier notes that due to the nature of Texas-specific statutes regarding proving negligence in regard to emergency medicine compared to other states, it is lowering the relative decrease on its Emergency Medicine class. Additionally, competition is playing a factor, as the carrier also notes that its rates within this specialty are higher than that of its competitors.
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