Our Unique Strategy to Control Premium

We pride ourselves on being the only company in New Jersey with an explicit strategy to stabilize premiums. This strategy was designed by our team of underwriters who bring many years of experience to NJHPIX. Their careful analysis uncovered critical areas involved in containing costs: communication; early reporting; coordination. With this knowledge, we have developed a sound plan to address these issues and keep rate increases to a minimum.

Here’s how we do it:

NJHPIX Underwriting: Back-to-Basics Approach

Why have so many physicians been randomly dropped by their carriers, even though their claims history is positive? Because many insurers underwrite quantitatively—meaning that they look only at the number or size of claims. For example, two claims incurred and the doctor is dropped. This is unlike the NJHPIX process, which is qualitative. We will talk directly with the physician to better understand the claim, as well as the physician’s attitude toward the claim. Qualitative underwriting takes into account that no two claims—nor two doctors—are alike. We have developed a unique approach that encourages physicians to talk with us. Our application is only part of the underwriting process. This enables us to consider doctors who may be rejected by other carriers.

Early Reporting

Unlike most insurers, we want to hear about your incidents as soon as they occur. We believe that claims prevention is the most cost effective claims management strategy. Each one of the doctors we insure is required to report adverse patient outcomes early. In some cases, early intervention has settled cases before a claim was asserted, thus avoiding reporting to the National Practitioner Data Bank. In most cases, early intervention has kept the cost of claims down by avoiding the involvement of lawyers. This constant vigilance and physician advocacy helps contain rates for all of our subscribers.

Working with Hospitals

So much of the cost of malpractice claims is a result of blame shifting between multiple defendants, usually hospitals vs. physicians. The only beneficiary of this behavior is the plaintiff and his or her lawyer. When we establish a coordinated defense between our insured and the hospital, the plaintiff has a more difficult time playing one party against the other. As a “hospital-friendly” company, we work collaboratively to lower the overall costs of defense and, in turn, to contain the cost of claims.