In a monumental discussion marking the finalization of the transaction that adds MLMIC to the Berkshire Hathaway family of companies, Warren Buffett expressed great enthusiasm about the future of healthcare and MLMIC’s role protecting New York physicians.
A recording of the live-streamed conversation between Buffett and MLMIC Chairman of the Board James Reed, M.D., is available below:
Malpractice Insurance: Warren Buffett on Protecting Physicians and Building on Success: “We’re Here To Last”
That afternoon gentlemen an exciting transaction has recently taken place between now and Berkshire Hathaway. Now that you've had your Egg McMuffin. I'd like to ask you a few questions about this recent transaction. Your views on healthcare and what you see for your organization is going far away. Buffet let's start with here. Can you tell us what attracted you to now.
Well it's exactly the sort of company we like to have become part of Berkshire Hathaway. It's a quality company. Serving. Porton constituency that we're there has to be mutual trust. Between both parties. It's done it on a very efficient basis so that a greater percentage of a dollar a premium goes directly to the to protect the doctors that have purchased insurance. And we buy for keeps. I mean. I made the age so I probably won't be around 100 years from now but but we're building Berkshire as if it will be. So we we are careful about what we do acquire because it's a marriage that is going to last.
Reed How about your perspective on your attraction to Berkshire Hathaway.
Yeah towards point for Milman and for the positions in New York there was a real match strategically to your vision. The culture that you've created at Berkshire Hathaway Nillumbik was created in the mid 70s during a very difficult malpractice market. A lot of companies were abandoning New York State a number of physicians got together to start a malpractice company. We couldn't practice without malpractice insurance. So the view was always a long range view. We wanted to be there for physicians forever. And so when we had the chance one day to start talking to Berkshire Hathaway this was the perfect batch of strategic vision Warren's long term vision of being in a company and in a market that is there for the long term that's exactly what we were looking for. And then the tremendous resources the financial resources of Berkshire Hathaway. We wanted to be able to assure the physicians in New York that if they insured with Milbanke there was nothing that would come at us that we wouldn't have the resources to deal with and the resources that would allow us to be much more innovative in the way we approach malpractice insurance in the future. And we want very much to do that. So we're we're excited about this ensuring positions is really a special form of insurance because if I insure you for your.
For your Holeman strong when it comes to longbows author of what you're concerned about is you get a good rough ride as fast as you can and that's that. But with physicians you're not only insuring them against the financial consequences of their activity but you're also defending their reputation. So there's a different calculus that goes into that. The last thing that the world would want to do is summo some case just to settle a case. That shouldn't have been.
Truly a payment made because the physician really didn't do anything.
So. So it's a different calculus with the with the auto claim. You know you just figure out a repair shop and get it done. But we.
We want the position.
I don't want to feel good about the fact that they didn't protect that but that their reputation has been protected as well. That's key.
Yeah. No question about it. A physician has a malpractice suit lodged against them. It's a very personal. It's personal. It's not.