Looking at the Big Picture
As you explore the cases we share throughout this issue, remember this: Behind every case is a Risk Management consultant building a relationship with an insured while they work together to overcome difficult, scary, strange, or even just everyday challenges.
If you have a question you would like to discuss with a Risk Management consultant, email RiskAdvisor@ProAssurance.com or call 844-223-9648.
The Helpline is actively monitored by live personnel Monday through Friday, 8 a.m. - 5 p.m. local time.
Inaugural Women of Influence Meeting
The inaugural Women of Influence event was held as part of the 2024 Leadership Elite meeting. Women from ProAssurance and Elite agencies joined together to share advice, stories, and perspectives on what it is like to build a career in an industry that has historically had low levels of diversity, particularly at the leadership level.
The event will be an annual tradition, with the goal of creating additional networking and leadership development opportunities throughout the year as well. The group will provide mentorship from those with established careers in malpractice insurance to those just getting started, as well as helping to recruit more women to the industry.
Highlights from the Event
The Women of Influence meeting centered around a panel discussion from those with experience moving through different roles in our industry.
Panelists included:
- Shawna Bertalot, President, WisMed Assure
- Gisela Plazas, Founder of Presidio Insurance and Vice President, Healthcare for NFP Insurance
- Andrea Linder, Assistant Vice President, Business Development West Region, ProAssurance
- The panel was moderated by Dana Hendricks, Executive Vice President and Chief Financial Officer for ProAssurance
Below are the top takeaways from the discussion.
My department is involved in all customer service processes, and acts as a liaison for technology-based projects throughout the division. Our focus regarding transformation has been on going back to basics. We are automating the processes we’ve been doing for decades to amplify the efforts of those teams and what they are capable of achieving. As we implement tools like AI, we are trying to be very thoughtful in where we choose to invest in change so we can extract meaningful value from our efforts.
We are being thoughtful about what projects we take on. Right now our focus is on launching the new portal. Next we will roll out InvoiceCloud for insureds on ProAssurance paper to consolidate our billing process.
The heartbeat of our customer service systems will be our Customer Central base, which will serve as one lens to see all the highlights on an account. Everything an insured does to interact with ProAssurance will be captured so it’s easy to identify and elevate concerns where needed.
Another major future project will be the expansion of our claims reporting. You and your clients will be able to report a claim online. The system is mobile responsive and updates in real time so you can make updates live in a meeting rather than having to wait until you get back to the office.
Tying all our systems together both allows new changes to be scalable and ensures that updates will be in sync going forward.
We are working on defining what InsurTech means for us as an organization. Broadly speaking, there is a lot of euphoria around innovation and disruption in business today. At ProAssurance, we want to focus on taking what we already have—data and industry relationships—and taking on initiatives that focus on our goal of being Carrier of Choice.
We are looking to gain efficiencies in the submission intake process. All submissions are different, so we rely on the expertise of our staff to get each one to the right place. I envision our new system will be able to go through the information provided, triage it, and get it to us faster so we can make underwriting decisions as quickly as possible. Submissions are the heartbeat of the underwriting cycle, so making significant improvements here will provide benefits for the process as a whole.
Our team now has a claims workspace to put claims stats at their fingertips, empowering our staff to make quicker decisions more efficiently. These new processes mean less time setting up files and confirming coverage so our staff have more time to meet with insureds, strategize with defense attorneys, and collaborate with other departments and our agents.
We have also improved our file storage using SharePoint so it’s easy to access files on multiple devices so our staff can get the information they need while out in the field.
The Claims department is also partnering with Roots Automation, a partner in our workers’ compensation space, to implement AI projects for our team. We are starting with creating a virtual assistant that will file documents 24/7 with no human involvement. Like our other initiatives, this will help our staff be better at their jobs by allowing them to focus on interacting with people and giving their attention to the complex files that require a higher level of insurance expertise.
In 2024 we founded the Automated Business Unit team with the goal of rolling out our automated quote-to-bind platform through our new portal later this year. This tool will allow you to engage in a digital app to get a quote within 10 minutes. We are launching this system with dental and concierge medicine, but the goal will be to continuously improve functionality and comfort to scale automated underwriting throughout our standard business.
We are also looking at where we can gain efficiencies in the submissions process so you can focus on more complex, higher opportunities and give more timely focus to the business that wants it.
Most of the successes in risk management are showcased with anecdotal stories, which can make it difficult to properly demonstrate our value. As a response, we made the commitment to invest in new technology with the Annual Baseline Self-Assessment (ABSA) and update our phone system to better quantify our value so we can be a true differentiator in the marketplace and exceed your expectations. Our focus is on finding every opportunity to put the right people in the right place to further relationships with you and your clients.
The new automated phone system helps us consistently achieve our goal of having all queries answered within 24 hours—so information is getting to you and the customers as quickly as possible.
The ABSA helps us applaud the good work being done in our insured practices and benchmark that performance so our insureds have that valuable information at their fingertips. We are further refining the ABSA so we can continue to gather the best possible data, as well as creating specialty-specific versions that touch on the unique needs of those practices.
We also launched a new podcast, Rapid Risk Review, which gives us a new way to share timely information that may not fit in a formal publication or CME activity.
Post-COVID we’re also back to focusing on doing in-person visits to make sure we have the best information possible and do everything we can to build the relationships with those key insureds and agencies.
Building all our systems on the same architecture means information can be updated in the portal in real time. We will have a single source of truth that simplifies data entry and upkeep and allows us to standardize our processes so we can implement changes most effectively.
Achieving Consistency in a Turbulent Market
As presented by Rob Francis, President, Medical Professional Liability
Our focus as an organization is to consistently build and innovate to achieve our goals. This starts with taking a clear look at the market and responding effectively to industry trends in order to maintain a stable market position.
The MPL Market at a High Level
Overall, the main factors driving current conditions in the MPL market are an industry-wide high loss ratio resulting from flat claim frequency and high claim severity and declining market participation caused by healthcare consolidation in the face of an excess capital position among carriers creating a very competitive market.
The industry loss ratio started to accelerate around 2018, and that trend is causing significant strain on reinsurance carriers who are taking significant rate in order to accommodate this.
The aforementioned claim frequency stability and rising are expected to continue for the foreseeable future. As a response, ProAssurance has been very aggressive in managing our reserves and will continue to be cautious with pricing, though trends will vary between venues. This strategy is the continuation of the efforts which began with re-underwriting our book of business in 2019-20 to improve our loss ratio—as well as taking on and re-underwriting the NORCAL book of business beginning in 2021. We will continue to focus on price adequacy but will seek out states and specialties where it is feasible to be more competitive.
ProAssurance’s expense ratio aligns with industry levels, but we are focusing on lowering this ratio to achieve lower than market average results. Also, we believe our wealth of industry data will provide a competitive advantage in the automation and data science space that will allow us to effectively reduce costs while maintaining the level of service our partners expect.
Agency Awards
Two new awards were introduced at the 2024 Leadership Elite meeting. These will be presented annually as part of our Leadership Elite program.
The Summit Award
This award is given to the agency that showed the highest net growth with ProAssurance in the past year. The 2024 recipient is NFP Insurance, with the award presented to Gisela Plazas, Vice President, Healthcare.
The New Business Award
This award is given to the agency that produced the largest amount of new business in the past year. The 2024 recipient is Arthur J. Gallagher Risk Management Services, with the award presented to Randall Nukk, Area President & Physician Niche Managing Director.
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Rate Changes
We are committed to responsible pricing that reflects the current risk environment. A review of our rate plan and rating factors has resulted in an updated rate strategy for new and renewal accounts in the states listed below.
The following updates, which have been filed and approved, may impact insureds. Note the carrier and effective dates below:
Blinded by Busy
Henry David Thoreau said, "Success usually comes to those who are too busy to be looking for it." Obviously, Thoreau didn't work in healthcare. If he did, he'd know that merely keeping busy doesn't necessarily lead to success.
Busy is part of the job description for anyone who works in or does business with healthcare. Something always needs to be done, but not all things that make you busy are created equal. Let's consider the different types of busy you deal with at work.
First, there's the busy of generating new business and renewals. Then there's the busy associated with customer service activities. And let's not forget the busy administrative tasks that keep things running behind the scenes. That's a lot of busy!
But wait, there's more! The more business you write, the busier you become.
During my medical sales days, my workload grew whenever I closed a sale because I also had to deliver the product. For me, this meant planning, setting up, and attending surgeries. This was fast-paced work I enjoyed, but it was time-intensive.
Eventually, my sales plateaued because I spent all my time covering surgeries leaving little time to hunt for new business. Although I excelled at retaining clients, my performance was measured by sales growth, which wasn't happening. When my manager offered to reward me for all my hard work by splitting my territory, I declined and decided it was time to level up.
I hired two assistant sales reps to manage surgeries which freed up my time. It felt great to refocus my energies on selling again. Yet, after several months, sales growth was disappointing. It didn't take long to discover what was holding me back because it felt very familiar: I was too busy!
The customer service tasks that consumed my time previously were replaced by:
- Administrative tasks such as company paperwork and sales reports
- Sales call preparation which included customer research and rehearsing sales presentations
- Non-essential meetings with managers or long lunches with sales colleagues
- Inefficient travel where I'd drive two hours each way to a distant part of my territory to meet with only one person (even driving and listening to the radio made it feel like I was working)
- Communication overload in which I'd park myself at my desk and spend hours writing emails, sending letters and thank you notes, and leaving voicemails
Frustrated, I sought help from a trusted sales mentor, my Uncle Arthur. He asked, "How does your company measure your performance?"
"I'm evaluated by sales growth."
Uncle Arthur nodded. "Right. You're paid to sell and retain business. This means you must focus on activities that most closely generate revenue during hours when clients and prospects are available. In other words, keep close to the sale!"
"Everything I do is about the sale," I retorted.
Uncle Arthur explained that keeping close to the sale means performing high-value tasks that are directly part of the sales process—things like scheduling appointments and making sales calls. Other activities like practicing presentations and writing thank-you notes are important, but since they don't directly engage prospects and clients, they should be done during non-sales hours.
Keeping close to the sale simplified knowing what tasks to focus on during the workday. More importantly, it produced steady increases in sales volume, keeping me busy and productive.
Sometimes leveling up is as simple as refocusing on your highest revenue-generating tasks. Keep close to the sale when clients and prospects are available, and as Thoreau implied, being busy will lead to success.
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Written by Mace Horoff of Medical Sales Performance. Mace Horoff is a representative of Sales Pilot. He helps sales teams and individual representatives who sell medical devices, pharmaceuticals, biotechnology, healthcare services, and other healthcare-related products to sell more and earn more by employing a specialized healthcare system. Have a topic you’d like to see covered? Email your suggestions to AskMarketing@ProAssurance.com. |
ABSA Insights
Aaron Hamming, Director, Risk Management Data Analytics and Technology
ABSA Early Results Shed Light on Perception of Medical Office Patient Safety Efforts
Since the ABSA launch in January 2024, over 400 medical practices have started the self-assessment process, with more than 2,200 individuals completing the survey tool. This influx of data is providing valuable insights for our Risk Management team, highlighting ways we can better support medical offices in their risk management efforts.
Analysis of ABSA data shows employees’ work hours correlate with their perception of a practice’s risk management systems, particularly at the high and low ends of the spectrum. Employees working between five and 16 hours per week rated the systems most favorably, with 53% selecting “Excellent.” This might suggest that part-time workers, who may have more specific, limited responsibilities, often view the risk management protocols positively, perhaps due to their focused interactions with these systems. This could imply that when employees are not overextended, they are better able to engage deeply with the procedures in place, leading to a higher level of confidence in those systems.
On the other end of the spectrum, employees working just one to four hours per week had the highest percentage of “Poor” ratings, with 12% expressing dissatisfaction. This might indicate that minimal engagement with the practice can lead to a lack of understanding or appreciation for the risk management strategies, leaving these employees feeling disconnected or less informed. The limited hours could mean they aren’t fully integrated into the practice’s safety culture or might not receive the same level of training and communication as those working more hours.
These findings suggest that an insight for practices is the importance of tailored communication and training, ensuring that even those who work very few hours feel connected and well-informed about risk management procedures. Simultaneously, for part-time workers, maintaining their focused roles while guaranteeing access to broader context and support could sustain the high level of confidence we see in this group. Addressing these extremes could help elevate overall perceptions of risk management systems across all levels of employee engagement.
For information on the ABSA, click here.
About ABSA Insights
ABSA Insights shares anonymous data gathered from ProAssurance’s Annual Baseline Self-Assessment—allowing the Risk Management team to share trends, points of interest, or potential areas of improvement with you and your clients.
