Pro-Praxis Insurance Launches New Program for the Healthcare Industry

Pro-Praxis Insurance, an MGA within Starwind Specialty, has launched a new insurance product to address the excess professional liability needs of the healthcare industry. The new program, written with A.M. Best-rated “A” paper, mirrors the underwriting strategy and pricing of the company’s other A-rated products. The Healthcare Excess Liability Program (HELP), in conjunction with additional Pro-Praxis programs, will enable the company to offer up to $15M in limits for hospitals or physician groups and up to $25M for large, allied health facilities.

The COVID pandemic took a toll on the healthcare industry, and the aftermath has resulted in deteriorating financial results and staffing shortages. This challenging environment has led to tighter underwriting requirements and cautious capacity management across the sector. While the rate of price increases is slowing, the ability to secure insurance limits comparable to the size of jury verdicts is difficult.

“We are listening to our distribution partners and meeting their needs for additional capacity,” said Bob Allen, president of Pro-Praxis. “Our key producers are seeing a growing number of healthcare providers ask for higher professional liability limits. In a world of multi-million-dollar jury verdicts, emerging risks related to artificial intelligence, and increased captive use, health systems, national laboratories, and large physician groups are all examining the limits they purchase. The HELP program is designed to consolidate highly rated capital, enabling insurance brokers and their healthcare clients to effectively structure risk transfer for medical professional liability risks.”

CEO of Starwind Specialty Bill Goldstein said, “By utilizing our combined expertise in the MGA arena, we are able to expand the offerings of Pro-Praxis to support professional healthcare entities with over $1B in revenue. However, the HELP program is also flexible enough to provide $5M in limits for companies with less than $25M in revenue. Healthcare spending in the U.S. accounts for roughly 18% of the nation’s gross domestic product, and it is critical that we continue to expand our products for this sector.” In addition to the professional liability products offered by Pro-Praxis, Starwind Specialty programs provide tailored property and casualty insurance products for the behavioral health industry, workers’ compensation insurance for home healthcare agencies, and cyber liability coverage for a broad range of healthcare institutions.