The power of customisation: Markel’s driving force for healthcare risk solutions

Markel has developed specific underwriting criteria and pricing parameters tailored to different segments.

“Whether we can provide a tangible risk management service, or simply access to information, that’s what we’re there for,” said Patrick Moylan, managing director of healthcare risk solutions at Markel.

Talking to Intelligent Insurer in an exclusive interview about the healthcare insurance market, Moylan explained: “A lot of healthcare facilities have similar policies and procedures, but with such a broad customer base we’d like to offer access to services that are specific to those exposures.” 

With more than two decades of experience in the insurance industry, Moylan now manages the underwriting strategy and portfolio for medical professional liability products.

Markel has a diverse client base, and the company writes more than 90 different classes in the healthcare business.

“We work in a lot of outpatient medical facilities where our risk assessment is based on the acuity and quality of services, the types of services they provide and their geographical locations,” Moylan said.

Markel has more than 40 years of experience in the healthcare field, and has developed specific underwriting criteria and pricing parameters tailored to different segments.

“We manage claims across nearly every venue in the US, so we have a lot of insight into the types of losses that our insureds may face in different jurisdictions,” he added. 

Deep client engagement

Moylan emphasised the importance of deep client partnerships, especially with larger insurers and their C-suite leaders. “This interaction allows us to go deep into their operations and their insurance buying strategy, their growth plans or patient safety initiatives,” he said. 

“Then we get to work with their brokers, evaluate the coverage needs based on their profile, and help structure a policy that meets their needs and fits within our appetite.” 

Customisation is central to Markel’s approach to risk management services. “Customisation is the theme we operate on when it comes to offering loss control services that are specific to the exposures of our broad customer base,” he said. 

For the larger healthcare providers that may have in-house risk management teams, Markel serves as an extension of these teams, providing support in areas where resources may be limited. 

“We help provide specific risk assessments in departments such as emergency or obstetrics, and we provide access to training for new risk managers,” Moylan said.

For smaller insurers, who may lack the resources for extensive risk management, Markel offers access to “best practices, incident reporting or emergency preparedness procedures”, as well as helplines and access to continuing education. 

Moylan was keen to mention Markel’s own claims organisation, saying: “Our claims staff are former medical defence attorneys, so they truly walk the walk when it comes to managing and defending claims,” he stated.

Staff problems and tech challenges

In Moylan’s view, two significant concerns facing the healthcare sector are workforce-related issues and cybersecurity. 

“There was a huge increase in demand for healthcare workers during the COVID-19 pandemic, particularly in hospitals and nursing homes,” he said, noting that reliance on outside staffing agencies increased labour costs. 

“Although the pandemic’s intensity has diminished, the demand for higher wages and recruitment challenges persist, with healthcare organisations investing heavily in retention and wellness initiatives,” he observed.

Cybersecurity and technology pose another major challenge, and Moylan cited the ransomware event at Change Healthcare in February which cost the company over $20 million in ransom. 

“Cyber in healthcare is certainly a big impact area,” he remarked, then referencing July’s CrowdStrike incident which, while not a hack, significantly disrupted healthcare providers’ access to medical records and scheduled visits. 

Other technological advances have brought opportunities such as telehealth and the use of artificial intelligence (AI). 

“The pandemic accelerated the implementation of telehealth platforms. AI applications, such as ambient listening and various advancements in the field of radiology, promise to enhance patient care and outcomes even more,” Moylan said. 

“Hospitals continue to be the most exposed to the highest severity claims.” Patrick Moylan, Markel

A segmented medical liability market

Describing the medical professional liability market as one that “varies widely by segment”, Moylan explained that the most competitive and profitable areas were “miscellaneous medical facilities” which include outpatient treatment facilities, clinics, and therapy centres.

“These segments benefit from a tremendous amount of capacity and face nominal rate increases in general,” he said. 

In contrast, more challenged segments such as correctional healthcare and behavioural health were subject to “more stringent terms and conditions and more significant rate increases”. 

“Senior care markets have stabilised but hospitals continue to be the most exposed to the highest severity claims, with a record-setting number of large verdicts in 2023,” he noted. 

He foresaw ongoing challenges for hospitals as “loss trends continue to deteriorate overall”.

As the healthcare industry continues to evolve, Moylan and his team at Markel remain committed to supporting their clients with innovative solutions, expert guidance and a nuanced approach to managing healthcare risks.

“I feel fortunate to work in an exciting and challenging business and serve a healthcare industry that continues to grow and evolve,” he stated, reflecting the dynamic and rewarding nature of his role.

“When you think about the transaction itself, we work through wholesale and retail insurance brokers, so they’re our access point to the customer.

“Partnership is the cornerstone of our business,” Moylan concluded.

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