Questions to ask when considering purchasing healthcare malpractice insurance from a risk retention group.

Purchasing healthcare malpractice insurance from a risk retention group may provide a certain sense of autonomy. However, that feeling of autonomy generally comes with financial responsibility, which is yours in good times and bad.

1. Will the RRG really save you money? Many RRGs boast lower premiums on the front-end and potential dividends on the back-end of each policy year. So, it may seem like you're saving money, which is justifiable in today's economic climate. Often, however, an RRG policyholder must contribute a significant upfront capital investment before joining. Additionally, if the RRG's policy is "assessable," you may be required to pay additional premiums after the policy term based upon your claims development as well as that of the entire RRG's claims development.
2. Does the RRG have superior and well-tested claims experience? Since 1899, MedPro has managed over 400,000 claims. Because most RRGs are less than a decade old, they generally do not have the claims experience available from MedPro. MedPro has seen it all. Every day we are attacking complex cases by leveraging our courtroom experience and the specialty-specific litigation experiences amassed by our claims managers who average over 20 years of healthcare malpractice experience. We also leverage our enormous database of claim information to determine precisely the right defense strategy (arguments, expert witness selection and utilization, venue and counsel selection, etc.). Managing over 400,000 claims since 1899 gives MedPro a significant advantage over RRG competitors when it comes to defending your claims.
3. Will the RRG present you with conflicts of interest? Depending on the size and/or structure of the RRG, you and your peers may have the opportunity to influence many aspects of the company. It's easy to understand why joining a group of likeminded healthcare professionals feels right. After all, you understand one another and by virtue of ownership, you share in the company's success. If you have the right, or obligation, to participate in the management of the company, you should ask yourself, "do I, or the other policyholders, have the expertise to run an insurance company?" "What happens if my interests as a stockholder and obligations as a practitioner don't align?" "What might happen when my peers and I disagree about defense philosophy or how to manage a specific case?"
4. Does your RRG's financial rating compare favorably to other insurance companies? MedPro has earned the highest financial ratings in the healthcare malpractice industry: A++ by A.M. Best and AA+ by S&P. Those ratings indicate our industry-leading financial stability. Ask the RRG what their financial rating is, and if they don't have one, why they have chosen not to pursue. As an owner, you're concerned about the RRG's future ability to handle any financial eventuality. MedPro has proven itself with these ratings. So, when a claim is reported years down the line, we will be ready.
5. Given the RRG's relatively recent formation, should you be concerned with its long-term stability? ? The ability to form an RRG was initially introduced through the passage of The Federal Liability Risk Retention Act of 1986, as such many RRGs are only a few years old. In contrast, MedPro has weathered the ups and downs of every market cycle the healthcare malpractice industry has faced. Having 114 years of perspective informs us that the current market and claims trends are not likely to last. When that occurs will carriers be quick to depart?

So, in light of these considerations, are you still comfortable purchasing healthcare malpractice insurance from a risk retention group?