Pediatricians Insurance RRG of Amerca (PIRRGA) Wins Regulatory Approval to Underwrite Medical Malpractice Insurance in Florida

A new medical malpractice insurance company was launched this week to provide pediatricians only with insurance under a mutual structure as a risk retention group only solely by its member doctors. The company offers long-term, low-cost, effective professional liability insurance along with innovative risk reduction methods for its member pediatricians. PIRRGA is the first and only insurance company owned by, operated by and administered soley for the benefit of America's pediatric community and its patients.

Miami, FL (PRWEB) February 20, 2004 --Pediatricians Insurance Risk Retention Group of America (PIRRGA), a physician-owned and physician-governed medical malpractice insurance company, today announced that it has received notification of registration from the Florida Office of Insurance Regulation to begin underwriting medical malpractice insurance in Florida. The company, legally domiciled and licensed as a Risk Retention Group (RRG) in Vermont, has commenced operations and opens with over $1,000,000 in capital infusion from its member doctors. The company is accepting new applications from Florida pediatricians immediately.

This is a great day, and a notable milestone for Floridas medical malpractice insurance market," said Eugene Rosov, president of PIRRGA and of Medical Development and Management, Inc., which, in conjunction with Marsh Management Services Inc. will administer the program under the auspices of the PIRRGA Board of Directors. For the last year, we have had the privilege to work with hundreds of doctors who decided to stand up and take control of an insurance market in disarray. With this registration, the state of Florida has recognized their efforts and given approval to a truly unique company owned by pediatricians, operated by pediatricians, and which exists only for the benefit of pediatricians and their patients."

In a recent study by the American Medical Association, Florida was one of twelve states where the cost of obtaining medical malpractice insurance was identified as reaching crisis proportions. Further, the situation has been exacerbated by the dramatic contraction of viable malpractice insurance providers and concurrent increases in professional liability premium costs in Florida.

"On behalf of our physician members, we would like to thank the Florida Office of Insurance Regulation, and especially Kevin McCarty, the Director of the Office of Insurance Regulation and his staff, who oversee insurance in Florida," said Mr. Rosov. Thanks to their efforts, and the help of Len Crouse, Deputy Commissioner of Captive Insurance and his staff in the Captive Insurance Division in Montpelier, Vermont, we can begin the vital mission of bringing confidence and rational pricing to Floridas troubled pediatric medical malpractice insurance market."

The PIRRGA Solution
PIRRGA was established in direct response to Floridas worsening medical malpractice insurance crisis. PIRRGA members comprise a Risk Retention Group, an incorporated group of members of a stock insurance company who pool capital and premiums to mutually insure one another. PIRRGAs mission is to provide Florida pediatricians with a long-term medical malpractice insurance solution with no profit motive.
PIRRGA members have elected a Board of Directors to make all important company decisions. The Board is fully independent and serves only the interests of its members. Members have control over every aspect of the company. MDMC and Marsh Management Services Inc. oversee the day-to-day operations of the company.

"We manage PIRRGA as if were our only asset in the world, and few other insurance managers operate under a similar mandate, mainly because they have owners who focus on short- term profits and reported earnings. Our principal advantage is our unique group of members. Most of them will be with us for decades to come. This stable ownership base gives us the longest-term management horizon to be found in an insurance company. While the current financial results of PIRRGA are of great importance to us and the Board, we will never allow them to be achieved at the expense of building ever-greater financial and competitive strengths," said Mr. Rosov.

The company points out that the press has been filled with reports of physicians and specialists saying that theyre considering leaving the state because of the cost of medical malpractice insurance. PIRRGA believes that it is a viable choice that holds out hope for adequate coverage with affordable premiums. By setting up a company that has no profit objective, it will only issue medical malpractice insurance, and will restrict membership to Florida pediatricians, and will not have to worry about increasing premiums to satisfy the need for shareholder profits.

The PIRRGA Business Model
PIRRGA will solicit and accept applications from independent practice pediatricians and pediatric groups throughout Florida without regard to size. The company is not planning to expand into other lines of insurance or offer coverage to hospitals and other health care facilities, nor does it have any plans at this time to underwrite policies in other states.

"We do not intend to diversify," said Mr. Rosov. Our focus is on helping all of our members become risk-free as much as possible, and implementing practices which follow the stringent guidelines set by the American Academy of Pediatrics. By focusing on the practice, and risk management in pediatrics only, we believe that we will achieve a lower risk profile and tremendous rewards to both doctors members and their patients."

The PIRRGA business model is built to achieve steady, conservative growth, and will accomplish its mission through disciplined and selective underwriting of risk combined with on-site risk management education and continuous member reviews. This strategy is designed to produce results that will out-perform industry averages while creating stable, long-term premium pricing and availability of malpractice coverage for its members. PIRRGA will take all necessary steps to guarantee consistent and fair underwriting treatment.

The company will offer claims-made medical malpractice insurance policies at cost, with excess profits being returned to policyholders in the form of dividends or distributions. It will offer liability limits of up to $250,000 per occurrence, $750,000 aggregate.
Unlike other similar providers, the company does not charge any application fee. The absence of any fee for application whatever makes it easier for pediatricians who need to know their options to obtain a quote from PIRRGA.

Membership in PIRRGA is open to individual general pediatricians and groups who practice primarily in the State of Florida. For more information on the current membership offering from PIRRGA, Florida pediatricians may call (305) 751-9195 and ask to speak to a representative about PIRRGA.
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