Alternative Risk Options
Your large entity’s insurance options, whether for medical professional liability or workers’ compensation insurance, expand with the size of your risk. We can help you address and navigate solutions that are the right fit.
You can choose from our flexible spectrum of alternative risk solutions.
Captive Solutions: 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 would 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 reinsurance partners, as well as highly respected financial, investment, and audit firms.
You can be confident knowing that Inova’s SPC structure can help to mitigate the fluctuations of traditional insurance pricing cycles—providing you with greater peace of mind.
Other Risk Financing Vehicles
Beyond our Inova SPC, ProAssurance offers other creative risk financing vehicles and products.
We have worked with both large hospital operations and large physician groups, customizing the approach to best meet their needs.
Loss Portfolio Transfers
When large healthcare operations acquire or divest some of their exposures, there is sometimes an interest in transferring liabilities through a loss portfolio transfer (LPT).
There is no single template for an LPT. Some involve shifting both known claims and IBNR to an experienced carrier, while others may seek only to transfer the IBNR. In all cases, the “seller” would pay a premium for a specific limit of insurance. In general, the larger the limits being assumed by the carrier, the higher the premium.
Prior Acts Reporting Coverage
Large healthcare organizations purchasing physician practices may be taking on considerable tail exposure that they wish to transfer. ProAssurance can provide coverage through an annual reporting policy or a prior acts reporting policy.
The organization would receive coverage for this exposure through a ProAssurance claims-made policy that excludes future exposures and covers only those from the past.
This coverage option can be tailored to meet your unique needs.
Loss-Sensitive Programs
Large healthcare organizations may realize savings and cash flow advantages by addressing some of their risk via a loss sensitive insurance program through ProAssurance. Some organizations may utilize such a program as a “stepping stone” toward an Inova captive solution.
Loss-sensitive program options can include large deductibles, retrospective rating, or profit sharing. These options are different and there is no “one size fits all.”
We work to help you craft an approach consistent with your organization’s risk philosophy, goals, and needs. Our underwriting, claims and risk management expertise with healthcare-related exposures compliments and dovetails with loss-sensitive rating plans.
