Medical Protective to Lower Rates for Texas Physicians

Medical Protective, a Texas admitted medical professional liability insurer, announced today it will reduce rates another 6 percent effective July 1, 2006. This reduction comes on the heels of two other decreases in the last 12 months, reducing malpractice premiums of Texas physicians by an average of 13 percent cumulatively.

“Medical Protective made a commitment to Texas policyholders, legislators and regulators that we would closely monitor the impact of tort reforms passed in 2003. We are pleased that the emerging data continues to suggest a moderating trend in loss costs and that we are, therefore, in a position to reduce our Texas rates again,” said Timothy Kenesey, president and chief executive officer of Medical Protective. “We are also pleased to confirm that last year’s acquisition by Berkshire Hathaway has helped us attain the industry’s highest financial rating, allowed us to expand our underwriting appetite to additional practice specialties that meet our underwriting criteria, and provided us with the capital to open the door for even more Texas health care providers who desire the strongest carrier.”

Even though loss costs in Texas seem to be moderating, Kenesey reminded Texas health care providers to remain cautious.

“While our data suggests that the severity and frequency of claims is declining, Texas doctors shouldn’t lower their guard. Since the 2003 tort reform, thousands of claims against Texas healthcare providers have been reported, and multi-million dollar verdicts are still possible. It has never been more important for Texas doctors to insist on an insurance company with the strongest financial ratings, an impeccable, winning defense, and a clear commitment to never ask policyholders for capital contributions or special assessments.”

Kensesey said Medical Protective has served Texas doctors since 1916 and carries ‘AAA’ S&P and ‘A+’ A.M. Best ratings. The company has more than 10,000 policyholders in Texas and more than 75,000 nationwide. It generates more than $700 million in annual premium.