Mid-Year Business Update from TDCSU
By Paul Romano, TDCSU President
When my first child was born, someone said to me, “The months and years will fly by, but the days and nights last forever.” With the first half of 2020 now behind us, that seems to be an appropriate summation of the year thus far.
We had a strong start to the year, with February marking four years since the creation of TDCSU. Then, roughly six weeks later as the first quarter was ending and in compliance with national and regional guidance, we initiated our remote workforce plan in response to the coronavirus pandemic. This transition was accomplished virtually overnight. While not surprising, it was heartening to see no material issues or disruptions to our day-to-day operations. We hope it is evident that we remain committed to thoughtful and timely service in all aspects of our business.
From a state of the business perspective, it is noteworthy that our submission flow across all segments has been extraordinary. Our premium revenues are above plan through six months. Our recent renewal rights agreement is serving us well, bolstering our managed care and medical facilities writings. Our claims inventory is seasoning as expected. General market conditions and COVID-19 implications have created both opportunities and challenges, but our team is actively managing the current circumstances and we are pleased with our business progress thus far.
It comes as no surprise that new and renewal account pricing continues to rise significantly over the first half of this year. Increases in funding of high severity, long tail business has been needed for some time and will inevitably serve to stabilize capacity going forward though we know the process of achieving adequate pricing does not come easily.
While our medical professional liability segments continue to be the largest drivers of growth, our non-medical segments that include Management Liability, Cyber Insurance and Life Sciences continue to gain traction and reach growth milestones. We are pleased with our progress in these non-medical segments on their own merit while also finding the presence of these areas of underwriting expertise enriching the overall dialogue and insight we bring to exclusively insuring healthcare organizations.
COVID-19 has initiated a lot of rethinking and dialogue around coverage exclusions and changes to other underwriting terms and conditions. Though we have chosen to adopt some of these more restrictive changes, we have been very deliberate in our analysis of the facts as well as the practical implications of these actions. And we have chosen to bring them into play only where we believe it is necessary to do so. Our underwriters are fully prepared to discuss our thinking both overall and at an account or submission level.
During the second quarter, we also introduced updates to our website in hopes of improving your experience with it and its value to you. The site includes a few enhancements to make doing business with us easier. Those enhancements include more robust content about each of our business segments, contact information for our segment leaders, easy access to our writable PDF applications, as well as history about TDCSU and our relationship with The Doctors Company. We encourage you to share any feedback.
Unpredictability continues in some of the routines we have come to know given the circumstances of the last several months. It remains likely travel restrictions will persist, and it is improbable we will see each other during fall industry events. However, we will continue to share communications that highlight developments we believe are important to you. We encourage you to be watchful for those and use them as a catalyst for conversations with us. We are available to you and will remain so throughout this time of uncertainty, and beyond.
On behalf of our entire team, thank you for your continued commitment to working with us in serving the needs of our mutual customers.