Risk retention group activity in the Healthcare sector has picked up in 2021, with ten new formations and significant premium growth at several Healthcare RRGs. The hardening was evident in the 2020 premium data for Healthcare risk retention groups, with Healthcare RRG premium increasing by 7.7% in 2020.
Much of the activity in 2020 was in the Nursing Home subsector where premium increased by 52.9%. There were also a handful of new risk retention groups that formed to provide coverage to nursing homes and long-term care facilities. The Physicians subsector also saw strong premium growth of 9.8% in 2020.
Activity in the Healthcare sector has been much broader in 2021, with new RRGs forming to provide coverage to hospitals, academic medical centers, and physicians.
The Risk Retention Reporter spoke with American Excess Insurance Exchange, Risk Retention Group (AEIX) and Premier, Inc. Senior Vice President—Underwriting & Business Development Matthew Siciliani and AEIX and Premier, Inc. Vice President—Claims and Litigation Mollie O’Brien to discuss how AEIX has responded to the pandemic, recent growth in Healthcare RRGs, and what’s next for med mal insurers.
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