03 Aug The Doctors Company is set to Give New York Physicians a New Malpractice Insurance Option
The Doctors Company (TDC) is preparing to enter the New York physician medical malpractice insurance market. TDC is awaiting a final decision from The New York Department of Financial Services; an approval is expected which could have TDC fully operational as early as the 4th quarter of 2017.
TDC is the largest physician-owned insurer in the country and insures over 78,000 physicians. With an AM Best Rating of A (Excellent) and policyholders surplus of over $1.8B, TDC provides the financial security a physician should expect from their malpractice carrier.
TDC will operate in New York through two vehicles: on an admitted basis in New York which gives physicians access to New York State’s Section 18 “Free” Excess coverage and through a newly created Risk Retention Group (similar to MedPro, Coverys, and ProAssurance). Both vehicles will be able to offer occurrence or claims made coverage, full consent wording, cyber protection, and access to the TDC “Tribute Plan”.
The TDC Tribute Plan was created in 2007 and rewards physicians for their loyalty to TDC and their commitment to superior patient care. TDC allocates funds into the Tribute Plan loyalty pool to reward physicians for advancing and protecting the practice of good medicine throughout their careers. Each eligible physician will accumulate an individual balance representing his or her share of the loyalty pool. Physicians may become eligible to receive the accumulated balance when they permanently retire at age 55 or older with five or more years of continuous coverage with TDC. Since the program’s inception, TDC has paid more than $45 million in Tribute rewards; the highest physician to date earning $138,599. In addition, insured physicians have been paid over $370 million as part of TDC’s multiyear dividend program. Please note, the TDC Tribute Plan is not available if coverage is written through the TDC RRG.
The New York malpractice market was stagnant for over 20 years but over the past 3 years the market has had a flurry of new and financially viable insurers. This trend continues with the emergence of TDC in the New York market; physicians will have another choice which should continue to increase the competition and drive premiums down.
If you would like to learn more about TDC or the New York malpractice market, please contact us.
Phalanx Healthcare Solutions is a New York based medical malpractice insurance consultant specializing in insurance and reinsurance solutions for physicians, physician organizations, and healthcare systems. For more information, visit our web site at www.phalanxllc.com.