Trekking the Insurance Path Side by Side

22 March 2024

As we journey through the ever-changing landscape of medical professional liability (MPL) insurance, it’s crucial to stay well-informed about the dynamics that impact your coverage. Let’s unravel the impact of Claims-Made Step Factors on your medical professional liability coverage, empowering you to navigate your policy with confidence.

Demystifying Claims-Made Step Factors

At Inszone Insurance, we believe in empowering our customers with knowledge. Claims-Made Step Factors serve as a key element in adjusting the premium of your claims-made policy. These actuarially determined mechanisms capture the evolving exposure linked to the professional services you provide over time.

How Claims-Made Step Factors Impact You

To make it relevant to your policy, let’s break down a typical series of step factors often found in healthcare professional liability policies. Please note that the claims-made step factors used in the following table are a ballpark example, factors will vary by carrier AND by state. For specific projections on step increases, your agent will refer to the carriers’ underwriting guidelines, or the carriers’ rate/rule/form filings for your state.


Claims-Made Year 1 2 3 4 5
Step Factor .35 .65 .85 .95 1.0
Premium Increase N/A +85.71% +30.77% +11.76%% +5.26


Understanding the projected premium increase is crucial for budgeting purposes. For instance, moving from the first to the second-year claims-made step implies an 85.71% premium increase, all else being equal.

How It Translates to Your Policy

Assume your mature premium is $10,000. The first year’s premium would be $3,500 (calculated by multiplying $10,000 by .35). The second year would cost $6,500 (calculated by increasing $10,000 by .65). The percentage increase matches the data in the table and reflects the increased exposure to potential claims activity.

Changes in your risk profile during the policy’s term may have an impact on the renewal premium. However, having this knowledge allows you to better comprehend the dynamics of your policy.

Traversing the Insurance Landscape Together

At Inszone Insurance, our commitment is to keep you well-informed and supported. As the insurance market experiences shifts, we want you to feel confident in comprehending these changes. This post serves as a guide, ensuring you have the insights needed to make informed decisions about your coverage.

As an Inszone Insurance policyholder, understanding Claims-Made Step Factors isn’t just beneficial; it’s integral. Stay tuned to our blog for more articles tailored to meet your insurance needs.


Source: https://www.ethosinsurance.com/blog/claims-made-step-factors-101?utm_content=275313845&utm_medium=social&utm_source=linkedin&hss_channel=lis-q0gXvy6Roh

Amy Hieatt

Executive VP – North American Health Care Practice Leader

Amy Hieatt is an Executive VP – North American Health Care Practice Leader at Inszone Insurance Services, joining Inszone in September 2023. In her role, Amy is responsible for overseeing the strategic direction and day-to-day operations of Inszone’s national healthcare liability vertical, with a strong emphasis on maintaining a customer-centric approach.

Over the past 20+ years, Amy has dedicated her career to the property and casualty insurance sector, focusing extensively on the Medical Professional Liability and Professional Liability sectors. Prior to her role at Inszone, she served as the Managing Director at Connected Risk Solutions (formerly ABRisk Solutions), a national wholesale brokerage. Before that, Amy led Business Development efforts for NORCAL Group’s Admitted and E&S business lines, managing teams across four regional offices nationwide. She initially entered the insurance field on the retail side, holding the position of Executive Vice President at a regional retail agency that specialized in healthcare liability insurance.


Amy’s remarkable journey in insurance, spanning over two decades, is marked by her commitment to servant leadership, her impressive track record of achieving growth and retention, and her dedication to mentoring high-performing collaborative teams. Her expertise in the medical professional liability sector has earned her the admiration of her peers, recognizing her as a visionary leader and expert in the field.


In her time off, Amy is passionate about outdoor activities, advocating for animal rights, and finds joy in traveling and reading.

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