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Medical
protective insurance
GE Commercial Medical protective insurance is the oldest and one
of the highest-rated admitted primary medical professional liability
insurers-commented today on its century-long commitment to health
care professionals, highlighting in particular the support it has
provided in recent years when thousands of the nation's leading
physicians, dentists and professional corporations have been added
to the exclusive ranks of Medical protective insurance policyholders.
Physicians and health care professionals have turned to Medical
protective insurance for more than a century because it has proven
consistently able to protect their reputations and assets while
remaining financially solid," said Timothy J. Kenesey, President
and Chief Executive Officer of MedPro. "Their confidence is built
on our focus on and commitment to building a balanced portfolio
that includes the best health care providers practicing the type
of medicine we can predict and understand, in those jurisdictions
we can predict and understand. This is becoming increasingly difficult
in this challenging market, but we have continued to demonstrate
this focus and commitment." According to a recent report by Medical
Liability Monitor (Rate Survey, October 2003), five insurance companies
have indefinite new business moratoriums in place. The rating company
A.M. Best downgraded eight medical professional liability companies
in 2002 and nearly double that number (14) in 2003. "There is no
question that loss cost trends continue to outpace expectations
for the industry in general, and while we firmly believe that the
Medical protective insurance continues to outperform the industry,
it is not immune," Kenesey added. "But the Medical protective insurance
guiding principles-ensuring that we price our coverage appropriately
for the risks we assume and continually adjusting our underwriting
methodology to reflect the changing nature and predictability of
risks-are part of what has enabled MedPro to meet the challenges
of the past and what will help us continue to meet future needs."
Medical Liability Monitor reports that 14 companies have withdrawn
or severely restricted new writings in many states. Many companies
are also placing restrictions on the specialties for which they
will write new insured. The specialties most commonly affected have
been OB/GYN, emergency medicine, general surgery, orthopedics and
radiology. The companies surveyed also indicated significant re-underwriting
with almost half saying they non-renewed more physicians in 2003
than in 2002.
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"MedPro
anticipates that 2004 will mark another challenging year for health
care professionals with continued price pressure Medical protective
insurance, strict underwriting standards and few companies willing
or able to offer coverage," Kenesey predicted. "While it is certainly
difficult to have to pass along necessary rate increases and to
non-renew certain policyholders, the majority of our customers understand
the realities of the market and the value we provide, as evidenced
by our high retention rates and policyholder support." Medical Liability
Monitor's Rate Survey shows that 58% of the rate increases in 2003
were between 10-49% with some physicians seeing rate increases of
more than 100%. Rates for OB/GYNs,
GE Commercial Insurance 5200 Metcalf Avenue, Overland Park, KS 66201
gecommercialinsurance.com the highest of the three specialties contained
within the survey, were as high as $250,000 for a $1 million/$3
million policy. Furthermore, of the insurance companies surveyed,
73.5% reported tightening their underwriting guidelines while fully
83% believe additional large rate increases are needed. Kenesey
continued: "Health care professionals today seek a strong and financially
stable carrier that they know will be able-now and in the future-to
pay any claims; (ii) an aggressive defense of their assets and reputations
from an increasing onslaught of malpractice claims; and (iii) a
commitment to fight for tort reform measures and to offer broad
risk management tools that should, over time, stem the rising cost
of medical malpractice insurance and increase patient safety. As
an example of our commitment to patient safety, Medical protective
insurance has provided risk management seminars and online and home-
study courses for more than 7,000 MedPro policyholders since the
beginning of 2003." "With a rock-solid balance sheet, industry-leading
defense verdict win ratio and support for grassroots reform efforts,
MedPro has been able to deliver for policyholders, despite unprecedented
industry challenges and adverse trends. MedPro's underwriting discipline
and targeted focus-hallmarks of MedPro for decades-will continue,"
said Louis Parker, Medical protective insurance Chairman and President
& CEO of GE Commercial Insurance. "We will also use our analytical
expertise in this market to ensure we attain growth from within
the specialties and geographic regions that give us the diversification
necessary for proper portfolio balance." MedPro currently insures
doctors across a wide spectrum of health care specialties, including
1,500 or more providers in each of the following specialties: Internal
Medicine, General/Family Practice, Anesthesiology, Pediatrics, OB/GYN,
Orthopedic Surgery, Radiology, Ophthalmology, Cardiovascular Disease,
Emergency Room and Dental.
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