ROSLYN, N.Y., July 6, 2017 /PRNewswire/ -- Physicians' Reciprocal Insurers, ("PRI"), the second largest medical malpractice insurer in New York State, today announced that it has established a new management subsidiary to serve as attorney-in-fact and manage the business operations, effective immediately. PRI has terminated its management agreement with Administrators for the Professions, Inc. ("AFP"). PRI insureds are unaffected by this business structure change and remain fully protected according to the terms of their policies.
PRI's decision to self-manage and terminate the agreement with AFP follows an order by the New York State Department of Financial Services ("the Department") that AFP no longer continue as PRI's attorney-in-fact. That order comes after an examination of PRI by the Department that uncovered numerous irregularities in regards to actions undertaken by AFP. The Department of Financial Services is aware of and supports the transition to self-management.
"With the formation of our new subsidiary to serve as attorney-in-fact, PRI is positioned to be more responsive to our constituents including policyholders, claimants and brokers," said Barry Schwartz, Chairman of the Board of Governors of PRI. "We are confident that direct management of our company will be more cost effective and can restore the company to profitability. We are looking forward to a bright future."
PRI has engaged the consulting firm, The Princeton Partnership LLC, to assist in the improvement of operations, underwriting and claims management. Bruce Shulan, Managing Partner of the firm, will serve as Chief Executive Officer of the new attorney-in-fact on an interim basis until a management team is hired in conjunction with the Department of Financial Services.
PRI is a "reciprocal" medical malpractice insurer owned by its physician policyholders. It is one of only three fully licensed insurers writing medical malpractice insurance for doctors, clinics and hospitals in the State of New York, and writes business exclusively in the state.
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PRI's decision to self-manage and terminate the agreement with AFP follows an order by the New York State Department of Financial Services ("the Department") that AFP no longer continue as PRI's attorney-in-fact. That order comes after an examination of PRI by the Department that uncovered numerous irregularities in regards to actions undertaken by AFP. The Department of Financial Services is aware of and supports the transition to self-management.
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"With the formation of our new subsidiary to serve as attorney-in-fact, PRI is positioned to be more responsive to our constituents including policyholders, claimants and brokers," said Barry Schwartz, Chairman of the Board of Governors of PRI. "We are confident that direct management of our company will be more cost effective and can restore the company to profitability. We are looking forward to a bright future."
PRI has engaged the consulting firm, The Princeton Partnership LLC, to assist in the improvement of operations, underwriting and claims management. Bruce Shulan, Managing Partner of the firm, will serve as Chief Executive Officer of the new attorney-in-fact on an interim basis until a management team is hired in conjunction with the Department of Financial Services.
PRI is a "reciprocal" medical malpractice insurer owned by its physician policyholders. It is one of only three fully licensed insurers writing medical malpractice insurance for doctors, clinics and hospitals in the State of New York, and writes business exclusively in the state.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/physicians-reciprocal-insurers-transitions-to-self-management-300484463.html
SOURCE Physicians' Reciprocal Insurers
