Demotech Assigns Financial Stability Rating® to Midwest Insurance Group

Midwest Insurance Group, a Risk Retention Group (RRG) providing professional liability and general liability for nursing homes and physicians in Indiana, has been assigned a Financial Stability Rating® (FSR) of A, Exceptional, by Demotech, Inc. Demotech is a financial analysis firm that specializes in evaluating the financial stability of regional and specialty insurers. Caitlin Morgan manages the RRG as captive insurance specialists, including providing underwriting, risk management, and claims expertise.

This level of FSR is assigned to insurance carriers possessing exceptional financial stability in relation to maintaining positive surplus with regard to policyholders, the liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic providing. FSRs summarize Demotech’s opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC). Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven FSRs for Property & Casualty insurers and Title underwriters.

Midwest Insurance Group was formed in 2004 by Indiana nursing homes in response to escalating professional liability premiums and a lack of capacity in the traditional commercial lines market.  Policyholders with Midwest Insurance Group are provided professional and general liability coverage on either a claims-made or occurrence basis. All policyholders participate 100% in Indiana’s Patient Compensation Fund (PCF), which currently has a statutory cap of $1.25 million. (This cap is set to increase from $1.25 million to $1.65 million on July 1st, 2017, and again to $1.8 million in 2019). Currently, Midwest Insurance Group provides $250,000 in Professional Liability and General Liability limits with the state taking on the next $1 million of any one claim. Midwest Insurance Group is also reinsured by Lloyd’s of London, with an “A” rating and over $2 billion of assets. This organization provides extra insurance coverage for catastrophic events and frequency of claims.

Caitlin Morgan is pleased to work with members of Midwest Insurance Group in helping them to gain the many benefits of an RRG: stable insurance rates, broad coverage, effective loss control and risk management, favorable loss experience and access to reinsurance markets.

If you would like to learn more about Midwest Insurance Group, please contact us at 877.226.1027. We’d be happy to discuss membership in the RRG for Indiana-based nursing homes, assisted living facilities and residential communities as well as our extensive portfolio of captive insurance solutions.