How Premiums Are Determined
Insurance premiums are calculated by the ProAssurance Company and based on a comprehensive rating methodology utilizing a combination of developed rates and individualized assessments of the insureds exposure base. A mission of REI Protect is to utilize its experience to enhance safe practices to reduce risk, resulting in more favorable premiums.
Premiums, of course, must capture the cost of managing an insurance operation but REI Protect and Riosca use their industry and practice knowledge and experience in the REI practice setting to maintain a cost of doing business that is below the traditional expense load factors seen in the industry. From prudent and responsible underwriting of applicants, the ProAssurance Company is able to support favorable rates. They consider underwriting criteria such as individual exposures, historical results, quality of the facility's current patient safety program, and the insured's willingness to work towards improvement in these areas.
Do all members receive the same rate or are there considerations made for other underwriting criteria?
All rates are calculated based upon actuarial rate studies for each individual state and for rating territories within a state. REI Protect uses its industry and practice knowledge to work with the ProAssurance Company to create preferred rates. Considerations are made for underwriting criteria such as individual exposures, historical results, quality of the facility's current patient safety program, and the insured's willingness to work towards improvement in these areas.
Are members required to meet annual underwriting criteria?
Unless there is a material change in the delivery of care, current insureds or members are not re-underwritten each year.