Excellent Rates for Excellent
Physicians.
We are able to offer excellent rates for those Pennsylvania physicians
who qualify for our "elite" program.
Physicians with little or no claims
history who practice sound risk management may be eligible for the program. By limiting the program to these doctors,
we are able to offer excellent rates as the premiums paid by our elite physicians will not be subsidizing the claims of higher
risk individuals or groups.
Physicians in our "elite" program are saving
anywhere from $3,000 per year for a family physician up to $30,000 per year for surgeons for their malpractice insurance.
How can we offer rates that are significantly lower than other carriers?
By not offering our elite program to higher risk individuals and groups we believe we are lowering
the risk of claims..which means lower losses...which means lower preniums.
It
is no secret that claims frequency has been a recurring problem for malpractice carriers in Pennsylvania for many years.
This claims frequency has been a major contributing factor to the fact that most doctors are paying significantly
higher medical malpractice insurance premiums now than they did ten years ago.
Many
doctors have seen their company more than double their rate over the last ten years even though they have never filed a claim.
Why?
Simply stated....insurance is the "sharing
of risk". Otherwise stated...the claims of some are paid for by premiums of all.
Insureds who have never had significant insurance losses or claims are basically subsidizing the insurance
company losses caused by others.
This is the nature of the beast in the insurance
world.
Of course there are other factors which contribute somewhat to insurance
company rates increases such as bad investments and poor management. However, the primary reason for a rate increase
is claims.
Statistics have shown that 80% of all claims reported come from only
around 20% of doctors. Therefore, most doctors have been paying a higher premium than their track record warrants.
As stated above, they are sharing the risk. They have been subsidizing the claims of higher risk individuals and groups.
If a carrier could erase the claims from the 20% of the doctors who are submitting them, it is safe to say that they could
offer the other 80% of their doctors significantly lower premiums.
To help ensure
profitability, insurance companies use data that has been collected in the past to price their policies. For
example, if a company experiences significant losses from their pool of insured Vascular Surgeons, then they may initiate
a rate increase across the board for Vascular Surgery.
Another way to help ensure
profitability (or limit losses) is to carefully screen a doctor's application for coverage. If an applicant has claims
frequency or severity, chances are that he or she will not be offered a policy. However, simply offering or denying
coverage based upon past claims history can still lead to problems in the future. Some doctors may develop a claims
frequency or severity problem that was not evident on their application.
As there
is no crystal ball to predict future claims or losses, carriers try to make the most of the resources availiable to their
underwriting department ensure profitability..which, in turn, should hold premium rates steady. Unfortunately,
many carriers writing in Pennsylvania have failed as we have seen our share of bankruptcies and escalating premiums.
Reviewing one's past claims history is a helpful underwriting step but to truly succeed where
others have failed, one must try to search for the resources that can help limit their chances for future losses.
Our Elite program plans on succeeding where others have failed by taking underwriting
one step further than the norm. The Elite program provides excellent rates for those physicians who share similar
risk avoidance characteristics.
One resource used to help determine risk
avoidance characteristics is the National Institute of Quality Assurance (NIQA). NIQA is an organization dedicated to
providing membership to an elite association of professionals who share similar risk avoidance characteristics and practice
management.
Membership in NIQA is a reflection of individuals demonstrating the
highest quality of practice principles and sound judgment. Furthermore, studies over the years have shown that physicians
who are also members of NIQA are less prone to claims activity than the physician population as a whole.
This is why we request that our physicians become a member of NIQA prior to qualifying for our Elite program
and enjoying the excellent rates the program has to offer.
To help ensure that
we are able to offer the excellent rates for years to come, you should want your fellow Elite program physicians to also
be members of NIQA. Risk avoidance means lower losses, which means lower premiums for all.
To take the first step towards joining our Elite program, please complete and fax back the NIQA membership application
found below. If accepted into NIQA, we will provide you with a premium rate indication and a formal application for
coverage within 24 hours.
