PMA Announces Strategic Alliance with MedRisk, Inc. for Physical and Occupational Therapy Networks To Enhance Workers’ Compensation Medical Cost Containment Strategy

Blue Bell, PA, August 3, 2006—The PMA Insurance Group, as well as its affiliate, PMA Management Corp., a third-party administrator (TPA), has entered into a strategic alliance with MedRisk, Inc. for the purpose of providing PMA workers’ compensation clients access to MedRisk, Inc.’s Expert Provider Organization (EPO). A specialist in managing the cost of physical medicine services, MedRisk offers an EPO network that is comprised of more than 11,000 physical therapists and occupational therapists that have agreed to provide services at competitive rates. The alliance underscores a PMA operating principle of effectively managing workers’ compensation claims’ costs while providing injured workers with access to quality medical care and professionally guiding injured employees through the recovery process. PMA’s clients will be able to access the MedRisk EPO through First Health, PMA’s Preferred Provider Network of medical providers and hospitals.

“PMA’s alliance with MedRisk will bring added value to our clients,” said Monica O’Neill, PMA’s Senior Vice President, Managed Care Services. “The PMA and MedRisk alliance is part of PMA’s strategy to continually develop initiatives to address rising workers’ compensation medical costs and seek new ways to effectively manage clients’ losses.” Ms. O’Neill noted the significance of physical medicine costs in workers’ compensation, as according to the Workers Compensation Research Institute, approximately 20 percent of total medical costs in workers’ compensation can be attributed to physical medicine services, including physical and occupational therapy. Moreover, medical costs comprise nearly 60 percent of the overall loss expense for workers’ compensation.

“MedRisk is pleased to be working with PMA,” said Shelley Boyce, CEO, MedRisk, Inc. “We’re looking forward to delivering PMA clients increased physical medicine savings through our expert provider network and unique evidence-based management program.”

The MedRisk alliance is another component of PMA’s medical cost containment programs. PMA is committed to continually enhancing its programs to ensure that injured workers have access to quality medical services at a reasonable cost. In addition to Preferred Provider Networks, PMA’s Medical Cost Containment Program includes Medical Case Management, Medical Bill Review Team, Pharmacy Benefits Management Program, Return-to-Work Program and an Out of Network Program.

The PMA Insurance Group
The PMA Insurance Group, a multi-lines property and casualty insurer specializing in workers’ compensation, is known for service excellence and high levels of customer satisfaction. In addition to workers’ compensation, PMA offers commercial automobile, commercial multi-peril, general liability and umbrella insurance. PMA Management Corp., an affiliate of The PMA Insurance Group, offers third-party administrative services (TPA).

The PMA Insurance Group is headquartered in Blue Bell, Pennsylvania. The PMA Insurance Group includes Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company, which are subsidiaries of PMA Capital Corporation (NASDAQ: PMACA). For more information, please visit our website, www.pmagroup.com.

MedRisk, Inc.
Founded in 1994 and based in King of Prussia, Pennsylvania, MedRisk, Inc. provides specialty managed care services along with claims workflow management tools to the workers’ compensation industry. With a demonstrated core competency in physical medicine management, MedRisk has leveraged its technological expertise and evidence-based research to provide a growing list of products and services to its client community including document management, best-practice claim-workflow automation, specialty network services, network integration and data analytics. For more information, please visit MedRisk’s website, www.medrisknet.com.