Changing regulatory requirements are driving the creation of health care accountability practices

Liability risk in the healthcare sector has evolved significantly since the Covid-19 pandemic, driven by rapidly changing regulatory requirements, societal inflation and emerging trends such as telemedicine and digital health.

The complex and ever-changing threat landscape led QBE North America to launch a dedicated health care liability practice.

John Livatino (pictured), senior vice president and chief healthcare liability officer at QBE North America, said the initiative was driven by the insurer’s desire to expand the insurer’s specialty insurance coverage and fill a gap in the healthcare market.

“It can be a difficult space, and we felt we could apply our knowledge there,” Livatino said. “We knew the market needed a product focused on solutions to complex threats.”

What are the greatest liability exposures for health care providers?

Livatino spoke with Insurance Business about some of the most pressing issues in the healthcare liability space and how QBE North America plans to help policyholders combat them.

“Social inflation is a problem that we must fight on behalf of our insured people. To address this issue, we offer a claims team providing aggressive defense to help fight social inflation,” Livatino said.

“Emerging threats such as telemedicine and digital health also present unique exposures and require special safeguards. We have designed our product to meet these needs, employing an experienced insurer to lead this section of our policy.

“Other areas of the changing landscape include employee shortages and burnout, which are significant issues. Emerging obligations and changing regulations, especially in the field of reproductive health, create uncertainty. These include not only abortion, but also contraception, fertility risks and transporting patients for procedures.”

In addition, Livatino also cited evolving privacy regulations, including new efforts around biometric information and website tracking, as well as private equity investments as factors impacting the healthcare sector. Consolidation of hospitals and physician groups is increasing, and various medical and related areas are becoming a larger part of the industry.

The pandemic has also highlighted the importance of preparedness and resilience among healthcare organizations.

“We have seen Covid and the impact a pandemic can have on health care, as well as the preparedness required with insurance for realistic disaster scenarios,” Livatino said.

For brokers and insurers navigating this complex environment, accurate presentation and understanding of risk is crucial. Meetings between policyholders and insurers, including the claims team, are very useful in understanding and addressing these risks.

“The broker’s risk presentation is very important,” advises Livatino. “We really want to hear from the insured what their story is.”

Livatino emphasized that transparency is key in this partnership, especially when certain risks are considered uninsurable.

“We are very focused on partnership-based solutions,” he said. “Transparency is needed. I think there is a need on the market for a company that does not react to emerging risks.”

Regulatory challenges in healthcare are rapid and complex. QBE addresses these issues by ensuring its team is well-informed and engages in ongoing dialogue with clients and brokers. This proactive approach helps you tailor your protection to effectively meet regulatory requirements.

“It is important that your insurance company and underwriters stay up to date with current information,” Livatino said.

QBE is also developing a loss control feature to provide policyholders with additional support. This initiative, still in its early stages, aims to provide surveys, risk assessments and dedicated risk management resources.

“Having our policyholders have resources that don’t necessarily include insurance or claims is an important feature,” Livatino told Insurance Business.

Do you have something to say about QBE North America’s Healthcare Accountability practice? Share your thoughts in the comments.