You may have already heard the news if you carry a medical malpractice policy with ProAssurance. The Doctors Company has officially acquired ProAssurance Corporation.
Due to this merger, the tens of thousands of physicians, healthcare organizations, and medspa owners who carry coverage through either carrier may be wondering: what does this change mean for my medical malpractice insurance?
The short answer is not much, at least not right away. It’s worth understanding the long-term implications for the malpractice insurance market and learning how to shop for coverage the right way.
Why The Doctors Company Acquired ProAssurance
The Doctors Company is the nation’s largest physician-owned medical malpractice insurer, and ProAssurance was a specialty insurer with deep experience in medical liability, products liability for medical technology and life sciences companies, and workers’ compensation. Before the acquisition, ProAssurance ranked as the fifth largest medical malpractice carrier in the country. The Doctors Company sat at number two.
Bringing those two companies together doesn’t just add market share. It combines decades of claims history, underwriting data, and specialty expertise under a single roof.
ProAssurance built a strong reputation in several states, including Alabama, New Hampshire, and Nevada, where it was long considered the market leader. The Doctors Company now inherits that book of business, along with ProAssurance’s claims experience across a wide range of specialties.
This creates a significant advantage and positions The Doctors Company to better evaluate and understand the risk associated with its coverage. More claims data, pulled from more specialties and more states, gives underwriters a clearer picture of risk. It can help a carrier get to the bottom of a claim faster, price a policy more accurately, and spot patterns that a smaller data set simply wouldn’t reveal.
For The Doctors Company, this acquisition is as much about sharpening their underwriting and claims process as it is about growing in size.
What Changes for Policyholders Right Now?
If your policy is currently with ProAssurance, nothing changes immediately. Your coverage will automatically renew under The Doctors Company, and the transition is designed to be seamless.
Policyholders should not feel the effects of the transition in their day-to-day coverage, and that consistency matters in an industry where trust and claims history carry real weight.
What It Means for the Medical Malpractice Market Going Forward
Here is where things get more interesting. With ProAssurance now under its umbrella, The Doctors Company has one less major competitor in the market, which means physicians have one fewer independent option to choose from when shopping for coverage.Â
That shift alone makes The Doctors Company a stronger, more dominant player nationally, which can be a good thing for access to coverage, but is not a home-run choice. You will still benefit from comparing rates and coverage with other industry leaders.Â
If you were with ProAssurance, keep an eye on your renewal. For years, ProAssurance kept its premiums lower than what its claims payouts actually justified, a gap that wasn’t sustainable in the long term. Now that ProAssurance’s book of business is part of The Doctors Company, expect rates on former ProAssurance policies to be adjusted to support the actual risk. When that renewal notice comes, it may be worth shopping around rather than assuming the current rate will hold.
Keep in mind that rates across the industry have been gradually ticking up. As long as carriers and physicians continue pushing back on claims where no wrongdoing occurred, rather than settling reflexively, that discipline should help keep rates from climbing sharply.Â
Time will tell exactly how pricing shakes out on former ProAssurance policies, but a dramatic spike isn’t expected.
Why an Independent Broker Matters More Than Ever
This acquisition is also a good reminder of how volatile the malpractice insurance market can be, and why it helps to work with a broker who isn’t tied to any single carrier. MEDPLI is an independent insurance broker, which means our job is to find doctors, practice owners, and healthcare organizations the strongest available coverage. We have no allegiance to one company regardless of how that company performs.
If a carrier is financially unstable, an independent broker can steer you toward a company built to last. And if you’re currently with ProAssurance and want to understand what your renewal might look like under The Doctors Company, MEDPLI can help you shop the market and land on the right fit.
We will help you compare options and choose the best one, whether that ends up being with The Doctors Company or another carrier.
This type of consolidation isn’t likely to be the last of its kind. Mergers and acquisitions have shaped the malpractice insurance industry for decades, and more are likely on the horizon.
Having an independent advocate as your partner will help you align with a reputable, well-capitalized carrier. Using a medical malpractice insurance broker like MEDPLI is one of the best ways to protect your practice long-term.
With premiums and indemnity payouts on the rise, MEDPLI is your best ally.
Don’t settle for inadequate coverage or exorbitant rates.
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About the Author
Max Schloemann is a medical malpractice insurance broker helping physicians and surgeons secure Medical Professional Liability coverage. A Magna Cum Laude graduate of Southern Illinois University’s College of Business, he was named Outstanding Management Senior.
Max began his career in 2008 at an industry-leading firm and founded MEDPLI in 2017 to guide private practice doctors and physicians in transition through the complexities of malpractice insurance.
Outside of work, Max, his wife Kristen (a Physician Assistant), and their four kids enjoy the outdoors and attending the kids’ sporting events. Contact Max for malpractice insurance questions.
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