As a very large healthcare organization, you may be looking to reduce the costs of your liability insurance program while retaining the level of risk that fits your organization. A retrospective rating program accommodates your desire for sizable risk retention while providing an insurance program with an alternative, individualized method for pricing.
Instead of your organization’s premium being based on your general risk type’s loss experience, your organization’s current experience—subject to a defined minimum and maximum—helps determine your premium. The monetary limit at which ProAssurance is to assume responsibility for losses also is part of the calculation. Your organization’s premium thus more accurately reflects your current experience. Adjustments may be made once your policy expires.
Your premiums are used by ProAssurance to reimburse claimants for losses and pay expenses, including loss adjustment costs. With your organization’s losses assumed above specified monetary limits, this is a risk transfer plan with clear benefits. The greater your risk control and loss reduction, the more you benefit.