ISMIE Updates Illinois Base Rate for 2022-23

July 12, 2022

Each year, ISMIE reviews all specialties, territories and other factors that determine our individual policyholder premium levels. This data-driven process incorporates our own claims statistics and a review of Illinois legal trends, helping us to anticipate and respond to changes in the medical professional liability landscape. Unfortunately, in Illinois we continue to note worrisome trends in indemnity severity with unparalleled high verdict amounts and settlement demands along with rising defense costs associated with litigation, especially in cases lacking merit.
As you are aware, Illinois’ new prejudgment interest penalty, which adds 6% interest for personal injury and wrongful death judgments, took effect July 1, 2021. While a Cook County judge recently found the law to be unconstitutional, prejudgment interest remains a consideration for calculating future claims payments. That will continue to be the case while we await a final decision by the Illinois Supreme Court on the constitutionality of the law.
In keeping with sound actuarial principles, our long-term commitment to policyholders requires that we respond to negative trends with an Illinois base premium increase of 5%. The increase takes effect October 1, 2022 and will be applied to each policyholder at their renewal. No specialty or territory changes will be made for the coming policy year.
The base rate is only one component for what determines individual premiums. ISMIE policyholders have access to a variety of potential credits that affect policyholder premiums based on underwriting criteria, loss history and risk management program participation.
Policy renewal documents will be available approximately 30 days before your renewal date and are currently available through a secure location on the ISMIE website. Simply log in and click on “Policy Documents.” If you utilize a broker, consider contacting them for more information. You may also reach out to ISMIE’s Underwriting Division by email.
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