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Downstream approaches second phase of long-term plan

19 Nov. 2013

When NAID established Downstream Data Coverage, it was understood that achieving a member-owned, captive risk, professional liability indemnification program would happen in phases.

The first challenge was to create a policy that corrected the problems with standard policies and relationships with underwriters that would allow the flexibility to eventually convert ownership. This was completed over two years ago. The second phase is to have enough Downstream policyholders to transition to the risk retention group program. At the rate at which the program is growing, the company expects to reach the next milestone in 2014.

From there, achieving the third and final milestone of the program, implementing the lower premiums and other benefits inherent in the member-owned structure, should unfold almost immediately.

“From the beginning, achieving the critical mass was the key to the plan,” said NAID CEO Bob Johnson. “Fortunately, we underestimated the immediately market differentiation value of Downstream to our members.”