Alternative Risk

Your Alternative Risk Options

Your large entity’s insurance options, whether for healthcare professional liability or workers’ compensation insurance, expand with the size of your risk. We can help you address a myriad of complexities.

You may be interested in:

Your risk is distinctive; let us provide expertise for insuring your healthcare facility. You can choose from our flexible spectrum of single-source solutions. We pledge to make it as easy as possible for you to achieve your business goals while treating you fairly.

Save With Risk-Sharing and get More Control

You can access a variety of solutions that allow you more control with your willingness to share risk.

You can choose from:

  • Various retention levels to assist your physician group, mid-to-large hospital, or merging healthcare entities with efficient securitization/collateralization
  • Profit-sharing programs when you have multi-year policy exposure, good loss experience, and strong risk management program
  • retrospective rating program with an alternative, individualized method for pricing

Your Captive Solution: Inova®

If you are seeking greater control over your insurance program, consider the smart alternative to traditional insurance—Inova alternative insurance. Inova offers agencies, large entities, and associations all the expertise needed for a true single-source captive solution.

Inova provides a secure, stable insurance environment through its Segregated Portfolio Company (SPC) structure. An SPC is a single legal entity comprised of individual “protected cells.” Your assets and liabilities reside securely within your own cell, providing better control over insurance costs and outcomes.  

Inova’s vertically integrated, fully bundled, specialty carrier approach makes creating, participating, and benefiting from a program as easy as possible. A true leader in alternative insurance, Inova’s Eastern Re was the first SPC to be authorized by the Cayman Islands Monetary Authority. Inova has structured, solid partnerships with globally respected Lloyd’s of London reinsurance partners, as well as highly respected financial, investment, and audit firms.

You can be confident knowing that Inova’s SPC structure can protect your business from the fluctuations of traditional insurance pricing cycles—providing you with greater peace of mind.

Addressing Your Very Large, Unique Underwriting and Financing Risks

ProAssurance can assist with innovative and individualized medical professional liability and workers’ compensation solutions for your large accounts with unique needs. 

Consider creating a single-source solution when your coverage presents:

  • Challenging size
  • Complexity
  • Financing needs
  • Other coverage requirements

Typical underwriting efforts result in a manuscript policy or contract with a premium in the millions of dollars.

ProAssurance can address the following in medical professional liability coverage:

  • Healthcare mergers and acquisitions insurance liabilities and financing
  • Self-insured claim reserve liabilities of large provider groups, hospitals, etc.
  • Unique and specialized self-insurance or deductible plans to match ultimate losses and premium as closely as possible
  • Effectively manage and finance run-off or exit costs of the claims reserve liabilities when an insured closes, exits, or abandons all or part of its business
  • Efficient securitization and/or collateralization of large deductible or Self-Insured Retention (SIR) liabilities

Increasingly, very large healthcare and other business entities struggle to best address their prodigious and very complex healthcare professional liability, workers’ compensation, and other insurance needs. This is especially true when notable circumstances are in the mix—and not for conventionally written, large accounts looking for standard renewal terms.

This level of risk also may bring financing challenges, as well as unique coverage requirements. ProAssurance can provide a strong solution, typically involving a manuscript policy or contract with a premium in the millions of dollars.

Healthcare professional liability coverages include:

  • Healthcare merger and acquisition situations–helping one party or the other, or even both parties, with insurance liabilities and financing thereof.
  • Addressing the self-insured claim reserve liabilities of large provider groups, hospitals, medical facilities, etc.
  • Providing unique and specialized self-insured or deductible plans that result in matching ultimate losses with ultimate premium as closely as possible.
  • When a client decides to close, exit, or withdraw from all or part(s) of its business–effectively managing and financing the run off and/or exit costs of the claim reserve liabilities.
  • Providing more efficient securitization and/or collateralization of large deductible or Self-Insured Retention liabilities.

Workers’ compensation coverages include:

  • Merger and acquisition situations–helping either or both parties with the insurance liability and financing thereof.
  • Addressing the self-insured claim reserve liabilities of large individual insureds, affinity groups, risk retention arrangements, pools, plans, and associations of all kinds.
  • Providing unique and specialized self-insured or deductible plans that result in matching ultimate losses with the ultimate premium as closely as possible.
  • When a client decides to close, exit, or withdraw from all or part(s) of its business–effectively managing and financing the run off and/or exit costs of the claim reserve liabilities.
  • Providing more efficient securitization/collateralization of large deductible of Self-Insured Retention liabilities.

Contact ProAssurance today to learn how we can help you solve your most complex and unconventional risk valuation and financing needs.

Very large healthcare liability and other risks often have both complex financing needs and unique coverage requirements.

ProAssurance can help, with the result typically including a manuscript policy with a premium in the millions of dollars. So no matter what type of large healthcare—or other—entity you represent, examples of situations we can help you address include:

  • Healthcare mergers and acquisitions insurance liabilities and financing
  • Self-insured claim reserve liabilities of large provider groups, hospitals, medical facilities, etc.
  • Unique self-insured/deductible plans to closely match ultimate losses with ultimate premium
  • Run offs/exit costs of claim reserve liabilities when a business closes, exits or withdraws from the market
  • Efficient securitization/collateralization of large deductible or Self-Insured Retention liabilities

With decades of experience crafting unique solutions for highly complex needs, ProAssurance has the answer for your most unusual challenge.

Large healthcare organizations can benefit from participating in sizable financial reinsurance transactions to help even out substantial, and often unpredictable, costs. Such transactions are an important part of your capital management strategy, with ProAssurance as your ideal reinsurance partner.

Since unpredictable losses can be catastrophic and new opportunities immense, financial reinsurance programs can help you plan for maximum losses and move forward with new opportunities—thereby smoothing out results. Your reinsurance partner accepts some risk on your portfolio reinsured under the financial reinsurance contract. Repayment may be linked to a financial metric of your reinsured organization with a structured timetable.

Among the business goals financial reinsurance can help your large organization achieve, consider how this option may help you acquire financing for an acquisition or joint venture.

When your large healthcare organization has sizable losses it wishes to cede, a loss portfolio transfer reinsurance treaty may be your best solution. Common reasons for this choice include exiting a line of business, changing an insurance approach, or simply preferring to transfer risk.

Perhaps the most helpful feature of a loss portfolio transfer is the ability to move liabilities from your balance sheet. You cede existing, open claims liabilities—as well as those that will be incurred from that risk in the future—along with reserves. In addition, your team is freed from managing the day-to-day claims requirements.

As a large healthcare organization purchasing physician practices, you also may be taking on considerable tail exposure that you wish to insure. ProAssurance provides coverage on both an admitted and excess basis—through an annual reporting policy or a prior acts reporting policy.

Your organization receives coverage for this exposure through a ProAssurance claims-made policy that excludes future exposures and covers those from the past. You also may add a deductible, incorporate aspects of a retrospective plan, or use another option to personalize coverage; this approach will help you meet your organization’s risk tolerance and needs.

You can cover your hired physicians’ tail exposure through one easy policy and invoice, updated annually to reflect physicians leaving and other changes. Address your organization’s unique needs while covering this tail exposure through ProAssurance.

Large healthcare organizations may realize savings and cash flow advantages by taking on part of their risk in a loss sensitive healthcare liability insurance program through ProAssurance. Your organization’s risk assumption affects your program’s total cost, and your choice of collateral is also important.

Up-front costs for a loss sensitive program are lower than those of standard coverage, with final premium based on your program term’s actual losses. A proactive risk management program is key to your organization’s ability to achieve lower costs.

Loss-sensitive program options from ProAssurance provide a strong solution for your organization’s unique situation, with your choice of upper limits to help stabilize costs. Whether it is a deductible, retrospective rating, dividend, retention plan, etc., we work to help you craft an approach consistent with your organization’s risk philosophy, goals, and needs. Choose our deep understanding of healthcare loss experience and claims handling to benefit your organization.

Contact

Shep Tapasak
Senior Vice President, Specialty Underwriting

Email: ShepTapasak@ProAssurance.com
Phone: 205-776-3034

Katy Ladisch
Assistant Vice President, Specialty Underwriting
Reinsurance/Alternative Risk

Email: KatyLadisch@ProAssurance.com
Phone: 205-776-3080