The management liability insurance market for managed care organizations (MCOs) – i.e., errors and omissions (E&O), directors and officers (D&O), and cyber insurance – is expected to remain a “hard market” in 2023. Systemic concerns exist around exposure to antitrust claims, class actions and other emerging claims. In addition, the carriers no doubt seek to improve loss ratios in light of the In Re Blue Cross Blue Shield Antitrust Litigation (MDL 2406) (BCBS MDL). While this market may begin to stabilize, MCOs will likely continue to face significant premium rate increases, albeit leveling off in trend.

What steps should you and your MCO take?

• Start placement efforts early. Go to the market and actively shop your insurance programs in order to maximize interested carriers and coverage options. Push carriers on proposed pricing and language before “picking a horse.”
• Assess options. Carriers may no longer unilaterally impose reductions in limits and increases in retentions for MCOs in 2023 as was the case in recent years, but MCOs should still assess retention levels, co-insurance and sub-limits, as well as seek pricing on various options. Some carriers are requiring both E&O and D&O placement in their quotes. Be aware those carriers’ policies will likely include “tie in of limits” provisions, such that the limit of only one coverage line applies to a “Claim” implicating E&O and D&O coverage (even though premiums were paid for both).
• Scrutinize...

Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vd3d3LmxleG9sb2d5L...