An excerpt from the November 1st, 2008 letter by Medical Protective President and CEO Tim Kenesey…
Over the last couple of months – in light of the Wall St. meltdown, widely reported bank and insurance failures and weaknesses, and the related implications to the medical malpractice insurance industry – many healthcare providers have asked:
“Is my medmal insurer unassailable and rock-solid, with the highest possible financial strength? Will my medmal insurer be able to provide the strongest defense of my assets and reputation? Can my medmal insurer give me peace of mind (in an otherwise uncertain time)?”
For Medical Protective policyholders, the answers are unequivocally “Yes!” and “Yes!” and “Yes!” Today, MedPro insures over 70,000 policyholders and hundreds have joined over the last few months. Both Standard & Poors and A.M. Best this year awarded MedPro their highest financial ratings of AAA and A++, respectively (for the third year in a row) … no other primary medmal insurer has close to this financial strength…
MedPro has been protecting the assets and reputations of healthcare providers with the most winning defense. This year alone, we will proactively defend over 6000 allegations of medical malpractice.., we will resolve 85% of our cases without the need for any liability payment (not even a cent!) and will win about 90% of the cases that go to trial…and in cases of liability when payment is necessary, healthcare providers know we have the wherewithal to pay.
As part of Warren Buffett’s Berkshire Hathaway, MedPro benefits from a conservative management philosophy that has made Berkshire the “World’s Most Admired Insurer” and Mr. Buffett the “World’s Most Admired Investor.” While the size and speed of the meltdowns have surprised many of us, I don’t think they surprised Mr. Buffett. He has been warning for years of the dangers of derivatives as “weapons of mass financial destruction” and reminded investors that we “only learn who has been swimming naked when the tide goes out.”
The conservative financial position of Berkshire and MedPro provides peace of mind – even during what the Wall Street Journal last month termed “The Worst Crisis Since the ’30s With No End in Sight.” Over these past few years, we have seen new insurers and risk retention groups enter the market to make a quick buck. While there are some disciplined competitors in our segment who are committed to long-term stability for their healthcare providers, we have also seen a proliferation of overly-aggressive competition from some established carriers as well as start-ups – many with little or no safety margin. We believe we will soon all learn when the tide goes out” that some of these insurers have been “swimming naked”. Your choice to trust Medical Protective and its long-term view and leadership in the face of these overly optimistic competitors is clearly the right choice, as emphasized in these times of financial turmoil.
Presidio Insurance Solutions is a broker representative of Med Pro.