The MPL Association’s 2022 Annual Meeting and Conference in Salt Lake City was an especially significant event for John Mize, President and CEO of State Volunteer Mutual Insurance Company. Not only did Mize reconnect with friends and colleagues at the first in-person annual meeting and conference in three years, but he was also selected to serve as the Association’s chair. Previously, Mize served as the Association’s vice chair and treasurer.
Mize shared his thoughts with Inside Medical Liability on a number of issues, including the obstacles and opportunities facing the medical professional liability (MPL) community, the benefits of the Association’s recently adopted strategic plan, and how the industry can build on the legacies of the past with innovation going forward.
IML: What are the most pressing challenges confronting the MPL industry today?
Mize: Consolidation in healthcare, which puts pressure on our insurable market, is one of the biggest. The acquisition of provider practices by hospitals and private equity firms is transforming the needs of the MPL insurance buyer. We must address these changes and adapt to the realities of the current and future marketplace.
In the short term, we’re challenged because COVID caused a shift in healthcare delivery and delayed the resolution of certain claims. Courts in many states were closed for months in 2020 and into 2021. These closures created distortions in loss development patterns which will make it more difficult to estimate loss reserves and evaluate rate adequacy. This challenge, combined with movements in claims frequency and the potential impact of inflation on jury awards and settlements, are driving increased uncertainty in financial projections. Companies in our industry have faced similar issues in the past. Successfully navigating through these uncertainties requires we remain diligent in monitoring, assessing, and appropriately reacting to trends in loss data as they emerge.
IML: Uncertainty seems rampant in many aspects of the MPL and healthcare universe. Where else have you encountered this dynamic?
Mize: Everywhere, really. Our communities are experiencing greater anxiety and unpredictability than I’ve perceived in my lifetime. Inflation is at levels not seen in decades, interest rates are rising, the stock market is negatively impacted by volatility, the war in Ukraine shows no signs of ending, tension among global leaders is increasing, new diseases and variants are emerging, and cyber risks are more significant than ever. That is a long list, and our readers could almost certainly identify other contributing factors. These challenges may seem overwhelming, but history suggests they will improve with time. If we focus on our business, support our policyholders through these same challenges, and do the right things each day, we will endure and be even stronger from the experience.
IML: What about talent acquisition and retention?
Mize: Our industry, like all others, is struggling to address staffing needs and the evolving desires of our employees. Retaining our best talent is critical, but we must also be good stewards of the resources entrusted to us. New hires require flexible work arrangements, want opportunities for growth, and expect their employers to invest in their professional development. These are difficult to achieve simultaneously. Some of the most important learning opportunities come from spending time with more experienced coworkers and seeing them handle difficult situations. We need to find a way to meet the changing demands of employees and keep them connected to our organizations.
Within the Association, we’re discussing what we can do to help our members in this regard. This may include offering managerial and leadership training for the next generation of MPL leaders and providing a forum for them to build relationships with others in our industry.
IML: These are major industry challenges. What’s one of the below-the-radar risks that you’ve identified?
Mize: Many companies in our industry have been very successful for 40-plus years. That success can hinder our willingness to change the way we do business. Across industries, there are many examples of successful companies which become tied to delivering value in a specific way. To avoid hurting their current business, they continue with their old ways and fail to innovate. Eventually, other more innovative competitors take over leadership in the marketplace. Member companies need to retain the elements of our culture that created historical success, while also evolving to address the changing needs and expectations of our buyers. It sounds easy, but it isn’t.
IML: The Association recently completed a strategic planning process. What can you tell us about that?
Mize: I’m excited about the new strategic plan and see it as a springboard for positive change. I’ve been part of strategic planning in several organizations and appreciate the potential for improvement this process brings. In particular, the small group discussions where participants shared ideas for improving the Association’s offerings were very enlightening.
The ideas and perspectives we’ve gained from the process highlighted ways the Association can evolve to meet the current and future needs of our members, affiliate partners, and other stakeholders. One example is the managerial and leadership training I mentioned earlier. Other examples include seeking new ways for the Association to provide unique knowledge and resources to our members, increasing the effectiveness of the defense bar through helping coordinate their efforts, and refining advocacy efforts to address evolving risks.
IML: Where might the Association be able to build on what it has already achieved to create more opportunities within its broader communities for conversations on key issues?
Mize: The past couple of years have been a valuable learning experience with respect to our meeting planning process. We need to take those learnings and evaluate how we can modify our meeting and educational approach to better address the changing needs of members. Each person has unique preferences, and we must provide flexibility so that a larger portion of our members and their employees will take advantage of the programs we offer.
One of the other items we’re evaluating is our data and analytics, and ways to deliver the most value. Are there things that we’re currently doing that could be improved? Are there new things we can do that are different and will provide additional value?
IML: How can the Association reinforce the value that the community brings while preserving the spirit of competition in the industry?
Mize: In the early days of the Association, member companies shared knowledge and lessons to help each other address challenges they faced. When we were encouraged to diversify, many members expanded geographically and began to compete with other members. This shift inhibited the atmosphere of sharing and collaboration. More recently, it feels this is changing. Members are increasingly willing to share with each other, while of course being mindful of antitrust concerns. This is especially true within some of the smaller communities that the Association has created. This dynamic has allowed people to build relationships and get greater value from their membership in the Association. I think this type of sharing is very helpful, and I’m pleased to see it evolving.
IML: What has this community meant to you?
Mize: I attended my first conference in the mid-1990s. The individuals I met through the Association have not only helped me be more effective as a professional, but many have become personal friends who have enriched my life. As I take on this new role, I’m excited to help others realize this benefit and contribute to the Association’s future success.