Adapting to Change: Mid-2024 Strategies for MPL Insurers
Introduction
The medical professional liability (MPL) industry has experienced a period of transition as impact of the COVID-19 pandemic recedes from the healthcare landscape.
This transitional period is ongoing, as these organizations continue to face challenges such as tort reforms, rising reinsurance costs, staffing challenges, and hospital consolidations. Amid the changes, MPL insurers must navigate varying market cycles as they work to maintain financial strength and stability so they can continue to provide robust insurance coverage to healthcare professionals and facilities.
These challenges have coincided with a period of transformation that includes both technological and business evolution. Now that we’re in mid-2024, the industry continues to show signs of improvement with better rate adequacy, diminishing pandemic-related exposures, higher reinvestment rates, and improved overall returns — all reflective of a resilient insurance sector.
To fully modernize coverage within the MPL industry, associated insurers should consider leveraging a digitization-forward strategy that includes adopting the right technological solutions, using data analytics, implementing telemedicine coverage, and enhancing cybersecurity measures.
Technological Evolution
The rising tide of global innovation and digitization affected a wide range of industries, particularly in the wake of the COVID-19 pandemic, accelerating a shift to remote work and the need for digital solutions which continues today.
But the stakes remain especially high for MPL and other insurance sectors. As a legacy industry, insurance has long relied on manual processes, particularly in documentation and workforce management, which has rapidly turned into a logistical and business liability. MPL insurers and other providers faced challenges with manual check issuance and physical policy document printing, prompting a move toward online document distribution and payment services.
The pandemic also catalyzed the need for cloud hosting solutions that reduce reliance on onsite infrastructure and allow for seamless remote functionality. Fast-forward to today, and cloud solutions are now essential across the insurance industry, enabling faster implementation of services and solutions and better scalability.
Business Evolution
Technological integration is about more than just logistical convenience and workflow — the pursuit of cost efficiency is ultimately what drives the ongoing need for modernization and digitization.
Not only do investments in better technologies pay off in terms of internal cost efficiency, but the improved care they facilitate ultimately lowers malpractice claims and insurance premiums — an economic boon for healthcare organizations and their MPL insurers.
These effective technology solutions require strong partnerships with vendors, particularly regarding the integration of cloud technologies. Indeed, the cloud has shifted data storage from on-premise installations to vendor-managed data centers, necessitating a trustworthy relationship between healthcare organizations and the vendors that are managing the flow and storage of their often-sensitive information.
Keenly managed data — whether pertaining to hospital logistics, prior malpractice instances, or patient medical records — is another way healthcare organizations can help eliminate errors, enhance patient safety, and reduce the number of MPL claims which will in turn reduce MPL insurance premiums. Keenly managed data refers to the practice of actively supervising every aspect of data collecting, storage, processing, and usage within your insurance organization. This includes data governance, data quality management, data security, data analytics, data compliance, data risk management, customer trust and transparency, and more.
Challenges and Solutions
As we enter the second half of 2024, there are three steps that MPL insurers can take to efficiently and effectively adapt to rapid technological advancements:
- Identify skilled professionals who are familiar with both insurance processes and cutting-edge technologies. A project leader with a foot in both worlds will be best equipped to handle integration and data flows.
- Empower your business users to take control over the forms, documents, and accounts associated with policies and claims, enabling the management of the constantly evolving business support functions, facilitating faster and more flexible change management.
- Increase your digital footprint, allowing for better marketing and brand management to convey a technological sophistication that matches customer expectations. Gone are the days of 8-5 support services or opportunities that present themselves in structured inputs. Customers now expect to be able to transact or communicate whenever they are ready. Opening more digital channels for information flow increases business opportunities.
These are not just methods for carriers to offload their responsibilities onto customers. Rather, by making these processes seamless and digitally optimized, the process of document management, claims filing, policy onboarding, and more will be easier for both parties with improved speed and data accuracy. Pre-integrated insurance software solutions from trusted vendors, agile methodologies, and iterative development processes, are all useful tools for accomplishing the above goals and meeting insurers’ business needs more efficiently.
Conclusion
With an increasing emphasis on cost reduction, operational efficiency, and digital transformation, the MPL industry continues to evolve to meet the new demands of a hyper-connected world. Indeed, as we’re seeing in numerous other industries, cloud-based solutions, AI integrations, interconnected digital workflows, and robust cybersecurity are reshaping how MPL companies operate. But this won’t happen overnight, and it won’t happen in a vacuum. As we look ahead to the second half of 2024, collaboration between vendors and insurers remains crucial in navigating the complexities of this transformation. With the right approach, MPL insurers will be able to cut costs, enhance workflows, and provide better, more robust liability protection, keeping healthcare organizations well equipped to best meet their patients’ needs.
