Two years ago, we were approached by a national group of specialty-specific independent practices seeking to develop a physician-owned insurance entity with the potential to increase its value over time. The group wished to create a customized solution that assumed appropriate insurance risk, decreased insurance cost, and maximized financial return.
Last year, we worked with them to launch a physician-owned management company built to assume a portion of risk through a captive insurance program. In this model, all member practices receive individual medical professional liability (MPL) policies from Curi, with coverages similar to or better than their current policies and no coverage gaps. We determine premium based upon each practice’s historical loss experience and practice size, in accordance with industry-standard underwriting practices. The new management company co-manages this captive solution with Curi.
The management company and Curi each share some of the risk for part of the premium, with Curi’s share effectively capping the liabilities for the management company. Curi and the management company have developed proactive guidelines for claims handling, established a dedicated legal panel, and collaboratively established a “best practices” risk management approach for policyholders.
This initiative provides a unique opportunity for physicians to crawl before they walk or run, and to proactively create an asset with lasting value.