PROFESSIONAL LIABILITY

Our consultants have more than 20 years of professional liabilityinsurance consulting experience involving both private insurance companies and insurance regulatory bodies in numerous states.  We have provided actuarial consulting to more than 12 professional liability entities including several physician-focused insurance companies.

Insurance Company Experience

  • Product development, rate analysis, and pricing including pricing of ancillary coverages.
  • Rate filing support and regulatory compliance assistance.
  • Analyses of loss and loss expense reserves.
  • Providing statutory statements of actuarial opinion.
  • Modeling impact of potential policy coverage changes.
  • Guidance in rating and underwriting large accounts.
  • Developing an insurer-specific model for establishing the unpaid earned premium reserve for death, disability, and retirement extended reporting endorsements.

New Company Formations

Our consultants are also experts in the formation of new insurance companies.  Our start-up work involves the items mentioned above as well as:

  • Reviewing and evaluating our client’s business models.
  • Assisting with business plan and regulatory application documents.
  • Drafting of rating manual and establishment of initial rate levels.

As these companies mature, we have assisted them with expansion into new lines of business and states, optimization of rating plans, and through mergers and changes in company organization.

Regulatory/Quasi-Regulatory Experience

Our knowledge of the medical professional liability industry is augmented by our in-depth understanding of the regulatory aspects of this exposure.  Our work on this side of the industry includes:

  • Assisting the West Virginia Offices of the Insurance Commissioner and the Governor’s office on how to alleviate medical malpractice issues in that state. 
  • Financial examinations and target market conduct examinations involving medical professional liability reserves.
  • Medical malpractice rate filing reviews for various state insurance departments.
  • Expert testimony at medical professional liability rate hearings.
  • Assistance to the IRS in a tax case related to the appropriateness of medical malpractice premiums being charged.
  • Performing studies for insurance commissioners in Mississippi and Wyoming related to the possible formation of medical professional liability joint underwriting associations.
  • Assisting the Wisconsin insurance department with an audit of that state’s patient compensation fund.
  • Rate work, reserve work, and tort reform studies the South Carolina Patients Compensation Fund and the South Carolina Joint Underwriting Association (also built a pro-forma model of the JUA’s operations to scenario-test funding shortages).
  • Analysis of the medical malpractice markets in Tennessee and Georgia.
  • Evaluating the carried reserves of the Indiana Residual Malpractice Insurance Authority, which provides medical professional liability coverage to professionals and corporations in Indiana’s residual market.
  • Funding, surcharge, and alternative rate analyses re: the Indiana Patient’s Compensation Fund on behalf of the Indiana State Medical Association.