Last month I posted a blog entitled “Malpractice Insurance – The Financial Black Hole”. The “black hole” analogy is that regardless of how well you practice medicine, and have few or no claims against you, those premium dollars are gone forever. Over a career in medicine, that can be a huge sum. Well, not anymore.

I practice finance in the State of Florida. The Florida Office of Insurance Regulation publishes an annual report, the latest of which is entitled 2011 Annual Report – October 1, 2011. This document summarizes the medical malpractice insurance market in Florida and the following numbers come from this report.

In 2010, total earned premiums paid in Florida for Medical Malpractice Insurance totaled $559,038,326. Direct losses incurred were approximately $140,000,000. Much of the difference was used to pay 1) Agent commissions and brokerage fees; 2) Taxes and licensing fees; and 3) Defense cost containment. 23 companies licensed in Florida accounted for 80% of the above earned premiums.

The report also states that “the average countrywide return on surplus for Florida’s leading medical malpractice writers was 12.2% in 2010, which represents the seventh consecutive year of profitability.” And yes, the premiums for coverage in the State of Florida are trending downward, but premiums in the $40,000 – $60,000 range per year are still considered normal.

While no one disputes the need for this coverage, no one, until recently, has figured out how to reward those insureds whose practice habits largely preclude claims and as a result, have and maintain a stellar record as their medical career unfolds. Until now.

You can purchase a medical malpractice insurance policy, with coverage similar to what you have now, at a similar price, from Physicians Benefit Resources Risk Retention Group. This company is currently approved to sell medical malpractice insurance coverage to physicians in 14 states, one of which is Florida. As one of those RRGs referenced earlier, it has the ability to be registered in any of the 50 states where there is a demand for coverage.

Many of us don’t have much extra time to explore alternative options; we’re used to paying these premiums and they are largely invisible. So I created a short web video called The Six Minute Solution. If you can find six minutes, you’ll know at the end of this video whether or not you want to know more. You can forward it to someone on your administrative staff and tell them to call me or to send me an email. I’ll put together, at no cost to you, a feasibility study for you to review. Click on this image: