Highlights from this video
EMPro Insurance: Strategic Growth and Preferred Business Lines
EMPro Insurance is expanding strategically beyond its New York origins, rebranding from PRI (Physicians’ Reciprocal Insurers) and leveraging a shell acquisition for multistate licensing.
With approvals now in New Jersey, Pennsylvania, Connecticut, and Massachusetts, EMPro is aiming to stabilize and grow in these regions before considering Vermont and New Hampshire in the next two years.
Core Business Lines and Preferred Risks
EMPro’s portfolio includes a range of healthcare providers and facilities, focusing on sectors such as:
- Large physician groups
- Hospitals and hospital systems
- Nursing homes and long-term care facilities
- Ambulatory care and home health agencies
- Laboratories and allied health professionals
The company has consciously avoided certain markets, such as small MediSpas, due to competitive limitations and a $12,500 minimum premium threshold.
Flexibility Through the Free Trade Zone
Leveraging New York’s free trade zone status, EMPro now offers tailored rates and policy forms for large groups, allowing customization in compliance with New York regulations. This flexibility is especially valuable for high-premium policies (above $100,000) like OB/GYNs and neurosurgeons, where competitive pricing and tailored terms are critical.
Pandemic Exclusion and Claims Management
EMPro has maintained a unique position by not including a pandemic exclusion in its policies, supported by its reinsurance partners. This decision has benefited their clients, particularly in New York, where temporary immunity laws reduced potential COVID-related liabilities. In cases like a major COVID claim involving a healthcare worker, EMPro’s robust legal defense set important precedents, minimizing the impact of future COVID-related claims.
Legislative Landscape and Impact on Premiums
The recently passed Grieving Families Act in New York, allowing for emotional distress damages, may increase premium rates across lines. EMPro’s leadership was active in lobbying efforts to prevent overly broad provisions in the act, focusing on limiting the pool of eligible claimants. However, anticipated increases in verdict sizes due to this act and other “thermonuclear” verdicts are prompting EMPro to evaluate premium rate adjustments, especially as reinsurance costs rise.
Strong Retention and Commitment to Partnerships
With an impressive client retention rate and few losses to competitors, EMPro continues to build on long-standing relationships with healthcare clients. The team prioritizes clear communication, providing direct contacts and guidance to brokers to help them effectively navigate complex markets.