FORT WAYNE, Ind.--(BUSINESS WIRE)--Feb. 25, 2005--The Medical Protective Company (Medical Protective), Texas' leading admitted primary medical professional liability insurer, announced today that it will not take an overall rate increase in 2005.
President and Chief Executive Officer Timothy Kenesey said overall rates for Texas physicians would remain at levels set last July.
"We made a commitment to our Texas policyholders, as well as legislators and regulators, that we would continue monitoring the impact of the recently enacted tort reform measures on our rate indicators," Kenesey said. "While there are many factors that affect the number of reported claims, the recent data begins to suggest a moderating trend. We are optimistic this trend is due in part to the tort reform measures and the constitutional amendment permitting caps on non-economic damages passed in Texas over a year ago."
Kenesey continued: "Our view, considering our nearly century-long history of service to Texas healthcare providers, has always been that it will take time after the reforms are in place to measure their full impact on our losses. While it will take approximately five years to bear out the full impact, we are encouraged by the trends we see in this 'initial round' of data and expect our statewide overall rates to be without an increase in 2005."
Kenesey noted that Medical Protective continues to offer Texas doctors the peace of mind that comes with its focus on long-term stability and proactive defense.
"Our more than 10,000 policyholders in Texas and over 75,000 policyholders nationwide choose us for three reasons: our industry-leading financial ratings and rock-solid balance sheet; our industry-leading winning defense that fights for doctors unjustly accused of malpractice and pays fairly when malpractice is clear; and our industry-leading risk management offerings dedicated to reducing risk and increasing patient safety. Unlike many carriers that have come and gone in the Texas market, Medical Protective has maintained the underwriting discipline and financial strength to meet our commitments today and for the years to come."
Remarking that Medical Protective was a founding member of The Texas Alliance for Patient Access (TAPA), Kenesey noted that Medical Protective views tort reform as part of a four-prong approach to enhance patient access to reasonably priced healthcare. Meaningful liability reform -- combined with (ii) robust risk management and patient safety initiatives, (iii) adequate reimbursement, and (iv) a free market with all insurance carriers playing by the same rules -- will help ensure patients have access to the care they need, and healthcare providers will be able to meet the challenges presented in today's dynamic environment.
"Medical Protective has and will continue to stand shoulder to shoulder with the medical community in support of effective reforms. By creating certainty with a constitutional amendment securing the cap on non-economic damages, Texas did it right and our numbers are now beginning to show it."
About The Medical Protective Company
With more than $700 million in annual premium and $2 billion in statutory assets, The Medical Protective Company, a subsidiary of GE Insurance Solutions Corporation, is a national leader in primary medical professional liability coverage and risk solutions to physicians, dentists and professional corporations. As the nation's first provider of medical professional liability insurance, The Medical Protective Company has been protecting the assets and reputations of physicians, dentists and other primary providers of health care for over 100 years. Its offerings include claims made and occurrence coverage, risk management consulting and education, premium finance solutions, and insurance support services. Through its affiliates and companion products' providers, The Medical Protective Company can also offer additional financial products and services for its physicians and dentists. Medical professional liability insurance products are underwritten by The Medical Protective Company, rated A- (Excellent) by A.M. Best and A (Strong) by Standard & Poor's, and are distributed through a nationwide network of employee market managers and appointed agents.
For more information, visit our Web site at www.gemedicalprotective.com.
About GE Insurance Solutions
GE Insurance Solutions is a group of companies that protects people, property and reputations. With more than $50 billion in combined assets, GE Insurance Solutions is one of the world's leading providers of commercial insurance, reinsurance and risk management services. Combining deep practical risk expertise with GE's legendary business acumen, our dedicated professionals in 28 offices around the globe help customers understand and manage risk more effectively. More information is available at www.geinsurancesolutions.com.
Contacts
GE Insurance Solutions for The Medical Protective Company
John Novaria, 816-448-7608
[email protected]
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340