Rate Making Methodology

At ISMIE, we understand a physician’s concern regarding premium cost. Because ISMIE is physician owned and managed, our rate making process is based on our belief in fairness to all physicians and long-term stability. Unlike commercial insurance carriers that offer various lines of insurance, such as homeowners and auto, ISMIE focuses solely on the needs of physicians.

Regarding medical liability coverage, each specialty is examined separately and funded to support its own losses. This ensures equality throughout each specialty class.

Historically, some carriers have been able to gain business by offering deeper discounts. These deeper discounts have typically been followed by significant rate increases, and times, such as the 1970s and 1980s, when most carriers abandoned physician liability insurance altogether. Even today, commercial carriers continue to abandon the medical liability insurance market as soon as they do not receive the expected return on their investment. ISMIE was created so physician policyholders could depend on a financially viable insurance company to look out for their best interests.

Our policyholders understand that cost is not the only important factor in selecting an insurance provider. Stability, service, security and peace of mind must also weigh into the equation. Therefore, while our competitive rates are not always the least expensive, our policyholders are confident ISMIE will be there, strong and financially secure, to serve their needs, defend their interests, and exceed their expectations when called upon to do so.