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The Medical Professional Liability Insurance Industry has been in a “soft” market for roughly a decade. This time has allowed many to forget that markets are cyclical and that – at some point – soft markets become hard markets. Irresponsible decisions made during good times get amplified during bad times. Providers should exercise caution today, and understand not only the financial strength and vision of the companies with which they partner, but whether they have a proper infrastructure to implement their respective strategic plans.
Responsible decision-making should not be confused with paying high prices.
On the contrary, the strongest carriers are typically better-equipped to compete on price. The key is understanding that the negotiation process should be transparent, and well-coordinated by a seasoned broker. Companies and brokers that discourage due diligence should be avoided.
By working with Toro, providers and systems can understand, and take advantage of, the considerable resources that exist in the professional liability industry. Toro approaches medical malpractice insurance as only one factor of an enterprise risk management strategy. Consider that privacy, billing, patient satisfaction, population health and “value-based” payment designs are all central to a comprehensive professional liability program and many “med mal” carriers have either the internal resources, or the desire to form external partnerships to assist their clients.
Toro works with brokers and providers to help them tap existing resources and build new programs based on each client’s most pressing challenges.
Risk Retention Groups
Toro’s founder has written extensively on the “risk” of risk retention groups (RRGs) for years. Despite these warnings, many physicians have elected to insure with RRGs without performing proper due diligence. As predicted, the industry has seen many RRGs perish – leaving countless physicians responsible to personally handle and fund all or portions of lawsuits that the RRGs promised to cover. The RRG industry remains perilous.
The RRG industry has, however, evolved. Now, a handful (the total number far exceeds 100) of RRGs have proven that they not only have the financial wherewithal to survive, but the flexibility to flourish. In fact, many of the largest and best-funded “admitted” insurance companies use the RRG model to insure some of their most complex risks.
Choosing the right RRG requires a high level of specialized knowledge. Before reaching out to an RRG, reach out to Toro.
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