Rates, Risk and Rough Times

Fact: The number of claims reported against ISMIE Mutual policyholders climbed 45 percent between 2001 and 2003.

Fact: ISMIE Mutual’s average payment per claim rose 30 percent – to nearly $600,000 as of year-end 2003.

These facts reflect frequency and severity of claims. They are the two most important factors that affect insurance rates, and they contribute, in part, to the health care crisis that currently grips our state.

Since 1976, ISMIE Mutual’s goal has been to establish fair rates for policyholders and to apply a methodical approach to ensure that rates are consistent with risk exposure. In addition to looking at frequency and severity of claims, our yearly ratemaking process involves exhaustive trend analysis by internal and external actuaries. Also considered are where doctors practice and the risk associated with their particular specialty. (Doctors in one part of the state do not subsidize doctors in another part; primary care doctors do not subsidize neurosurgeons.)

State of the market

Many competitors have fled the state, insure policyholders in only select counties or have been forced to take huge rate increases to stay in business. As of March 1, PIC Wisconsin has instituted an overall rate increase in Illinois of 64 percent, while AP Capital will increase its rates 42.5 percent effective April 1. Be assured, ISMIE Mutual will do its best to keep any rate increase to a minimum. In a company owned and operated by physicians, everyone is a policyholder; we buy the same insurance and share the same interests as you. For almost 30 years, ISMIE Mutual has provided sound medical liability protection at a price commensurate with risk. We’re physicians serving physicians – mindful that we must maintain our fiduciary responsibility to loyal policyholders so that we can focus on the health of our patients.

Advocate and innovator

ISMIE Mutual will aggressively and responsibly preserve our financial strength and long-term viability. We’re your advocates for federal liability reform. We’re innovators with programs like Managing Risk to help you reduce your chance of being sued. ISMIE Mutual is a fixture in the state. We’re here for the long haul to serve all policyholders in all Illinois counties. You can be sure that ISMIE Mutual will be here when our policyholders need us most.

To learn more about how ISMIE Mutual determines its rates, visit www.ismie.com.