News

Rate decrease and policyholder dividend approved for 2016

OMIC’s Board of Directors is pleased to announce a nationwide rate decrease and a 20% policyholder dividend for insureds effective January 1, 2016.

After a favorable year buttressed by excellent claim results and lower than expected operating expenses, OMIC is experiencing one of our best years ever. In recognition of this development, we are implementing a rate decrease in all states totaling approximately $6 million nationally. The amount will vary by coverage area and insureds will be notified of the decrease in their territory.

Since 2005, OMIC has lowered rates by an average of nearly 40% nationally. OMIC continues to outperform competitors by making fewer and lower average indemnity payments than the multispecialty industry average.

OMIC will also apply a policyholder dividend for all physician insureds in the form of a 20% credit toward 2016 renewal premiums. Since the company’s inception, OMIC has announced dividend credits totaling more than $65 million, leading peer companies by a wide margin. Issuance of dividend credits is determined each year after careful analysis of operating performance. OMIC remains committed to returning premium above what is necessary to prudently operate the company and to do so at the earliest opportunity.

Issuance of the dividend requires that an active 2015 professional liability policy be renewed and maintained throughout the 2016 policy period. Mid-term cancellation would result in a pro-rata dividend. Dividends appear on your policy invoice as a credit to either your annual or quarterly billing installment. OMIC issues dividends as a credit toward renewal premiums for two reasons: premium credits offer favorable tax implications for policyholders and allow for easy and efficient distribution of dividends, which keeps operating expenses as low as possible.