ProMutual Group, a provider of medical malpractice liability insurance in the Northeast, recently launched ProSolutions Insurance Company, an alternative capptive-like insurance entity designed to assist medical facilities and groups in controlling the cost of their insurance premiums.
ProSolutions is meant for medical facilities and groups that are not large enough to form a captive on their own. It will provide them access to a captive-type structure as well as captive-type cost benefits.
ProSolutions promises to help control malpractice insurance costs by allowing insureds to “rent” a protected cell from ProSolutions which will provide the infrastructure of the insurance company. Under this approach, either Medical Professional Mutual Insurance Company or ProSelect Insurance Company provides an insured with a primary medical malpractice insurance policy. Then, ProSolutions will assume from the company a portion of the risk insured under the primary policy. This allows an insured to participate in the ceded portion of its own loss experience, consistent with its agreement with ProSolutions.
With the steady rise in medical malpractice premiums and soaring jury settlements over the past several years, healthcare providers have expressed concern over the affordability of medical liability insurance. To control the rising costs, some hospitals and large groups have formed their own captive insurance companies.
ProMutual Group intends ProSolutions as a viable alternative for medical facilities and larger groups who want to participate in their own loss experience but avoid the costs associated with forming, capitalizing and operating a single parent captive.
In contrast to the formation of a single parent captive, ProSolutions says it offers both faster start-up and more affordable operating costs.
In developing ProSolutions, ProMutual Group partnered with USA Risk Group, an independent provider of alternative risk management services.
ProMutual Group is the largest provider of medical malpractice liability insurance in New England, insuring more than 18,000 physicians, surgeons, and dentists as well as a large number of hospitals, health centers and clinics. ProMutual Group has $1.8 billion in admitted assets, $418 million in policyholder surplus, and $349 million in direct written premium, and a Best’s Rating of A- (Excellent). Based in Massachusetts, ProMutual Group member companies also operate in Connecticut, Maine, New Hampshire, New Jersey, Rhode Island and Vermont. ProMutual Group distributes its products through contracted agents.
Source: ProMutual Group
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