CRICO’s Insurance Program Structure Is Changing

To our valued stakeholders and insureds,

In our ongoing commitment to enhancing operational efficiency, we wish to inform you of a substantial internal reorganization within CRICO. Effective December 29, 2023, Controlled Risk Insurance Company, Ltd. (“CRICO, Ltd.”), will reorganize into CRICO (A Reciprocal Risk Retention Group) (“CRICO Reciprocal”). As a result of this reorganization, all assets, rights, interests, and responsibilities of CRICO Ltd. will be transferred to CRICO Reciprocal.

One result of the reorganization is that all member insurance policies will be issued by the CRICO Reciprocal. Despite the internal changes and restructuring within CRICO everything will continue as usual, and your experience and interactions with us will remain largely unchanged. You can expect the same level of service, policy terms, and conditions as before.

Technical Details

A reciprocal insurance company (commonly referred to as a “reciprocal insurance exchange”) is a form of unincorporated, mutual insurance organization in which parties (called “subscribers”) exchange insurance contracts and spread the risks associated with those contracts. This exchange of insurance contracts is facilitated by a separate legal entity called the Attorney-in-Fact (“AIF”), which entity also runs the day-to-day operations of the reciprocal.

Prior to December 29, 2023: (i) Controlled Insurance Risk Company of Vermont, Inc. (A Risk Retention Group) (“CRICO VT”) issued all of the medical professional liability and general liability policies for the CRICO insurance program (the “Insurance Program”), and (ii) CRICO Ltd. reinsured, and retroceded to commercial reinsurers, a majority of these risks.

However, following the reorganization, there will be changes to the current structure, as follows:  

1. CRICO VT will enter into runoff status, meaning that it will cease to issue any new insurance policies but will ensure that any claims made on policies issued prior to policy year 2024 are processed and settled both promptly and efficiently.
2. CRICO Reciprocal will take over the role of issuing all CRICO Insurance Program policies, becoming the primary policy issuer.
3. CRICO Reciprocal will reinsure CRICO VT’s policies for policy years prior to 2024.
4. Commercial reinsurers will directly reinsure CRICO Reciprocal’s policies.

Role of RMF

In our case, CRICO Reciprocal’s AIF will be The Risk Management Foundation of the Harvard Medical Institutions Incorporated (“RMF”). RMF has consistently played a central role in the daily operations of CRICO VT, as a service provider to CRICO VT.  With this restructuring, RMF will now oversee the day-to-day operations of CRICO Reciprocal as the Attorney-in-Fact.

What Does This Mean for CRICO’s Insured?

CRICO Reciprocal’s approach to the Insurance Program will closely mirror that of CRICO VT’s prior operations as a service provider.

We have taken meticulous steps to ensure that the transition between CRICO VT and CRICO Reciprocal, as the primary insurer for the CRICO Insurance Program, is smooth and straightforward. This means insured members will find the overall experience with CRICO Reciprocal to be largely indistinguishable from their past interactions with CRICO VT.

In summary, our primary goal has been, and continues to be, ensuring consistent service and policy offerings for our insured members. Despite the transition, you can anticipate the same reliable and trusted insurance program that you have come to know. However, if you have any questions regarding CRICO’s reorganization, please reach out to [email protected].

About CRICO

For close to 50 years, CRICO has served the clinicians, institutions, and employees of the Harvard medical institutions and their affiliates with a superior medical professional liability program. It is our mission to protect providers and promote safety: safeguarding the assets and reputations of our insured organizations and the people they employ through vigorous yet fair malpractice defense strategies, working closely with organizational leaders and physicians to provide insured-clinicians the support they need in the aftermath of an adverse event, as well as facilitating cross-organizational convening to encourage broad adoption of proven patient safety practices. To learn more visit www.rmf.harvard.edu.