View this article online: https://www.claimsjournal.com/news/southeast/2004/02/24/36993.htm
Pediatricians Insurance Risk Retention Group of America (PIRRGA), a
physician-owned and governed medical malpractice insurance
company, has received notification of registration from the Florida Office of Insurance Regulation to begin underwriting medical malpractice insurance.
The company, legally domiciled and licensed as a Risk Retention Group (RRG) in Vermont, has commenced operations and opens with more than $1,000,000 in capital infusion from its member doctors.
“This is a great day, and a notable milestone for Florida’s insurance market,” said Eugene Rosov, president of PIRRGA and of Medical Development and Management Inc., which, in conjunction with Marsh Management Services Inc. will administer the program under the auspices of the PIRRGA Board of Directors. “We have had the privilege to work with hundreds of doctors who decided to stand up and take control of an insurance market in disarray. With this registration, Florida has recognized their efforts and given approval to a truly unique company which exists only for the benefit of pediatricians and their patients.”
In a recent study by the AMA, Florida was one of 12 states where the cost of obtaining medical malpractice insurance was reportedly identified as reaching crisis proportions, exacerbated by the dramatic contraction of viable malpractice insurance providers and concurrent increases in professional liability premium costs in Florida.
PIRRGA members comprise a Risk Retention Group, an incorporated group who pool capital and premiums to mutually insure one another. PIRRGA provides Florida pediatricians with a long-term medical malpractice insurance solution with no profit motive. The Board is
fully independent and serves only the interests of its members. MDMC and Marsh Management Services Inc. oversee the day-to-day operations.
“We manage PIRRGA as if were our only asset in the world. Our principal advantage is our unique group of members. Most of them will be with us for decades. Stable ownership gives us the longest-term management horizon to be found in an insurance company. While the current financial results of PIRRGA are of great importance, we will never allow them to be achieved at the expense of building financial and competitive strengths,” noted Rosov. “PIRRGA accepts applications from pediatricians and pediatric groups throughout Florida. Its focus is on helping all members become risk-free, and implementing practices which follow the stringent guidelines set by the American Academy of Pediatrics.”
The PIRRGA strategy is designed to produce results that will out-perform industry averages while creating stable, long-term premium pricing. The company offers claims-made insurance policies of up to $250,000 per occurrence, $750,000 aggregate at cost, with excess profits being returned to policyholders in the form of dividends or
distributions.
Membership in PIRRGA is open to individual general pediatricians and groups. For more information, visit www.pirrga.com .