Risk Management

2024 rate and dividend notice

OMIC’s incredible journey as the largest insurer of ophthalmologists in America continues as we surpass the milestone of 6,000 insureds. This organic net growth is remarkable in our industry and something we’ve achieved every year we have been in business. We thank each of you for our ongoing success.

We are pleased to report that OMIC continues to operate as one of the most fiscally sound carriers in America. We consistently outperform our multispecialty peers as indicated by our financial ratios and performance benchmarks. Indeed, the largest rating agency for our industry, A.M. Best Company, recently reaffirmed OMIC’s “A” Excellent financial rating and stable outlook.

Even as we celebrate our successes, medical malpractice judgments creep higher. As has occurred in virtually all aspects of our society, inflationary pressures have pushed up costs to defend claims and settle lawsuits. Some states have increased their malpractice damage caps to reflect these trends. Higher expenses for goods and services affect other areas of our operations, as well. In response, we have implemented efficiencies across our company, including automating tasks, eliminating redundancies, and streamlining systems. The results are improved ease of doing business for policyholders, premium discounts that are easier to obtain and available to more insureds, and reduced operating overhead.

In addition to these cost saving efforts, we have determined that we must prudently align rates with the expected future costs of doing business. Our 2024 premium rates will increase an average of 5.1% nationally and will vary by state, with most limited to a 4% change. While the increase in the national CPI from 2014 to date is 29.7%, after implementing the 2024 rate changes, OMIC’s average net premiums will have increased only 12.8% over the same period. We remain committed to only charging you the premium projected as necessary to pay claims and operate OMIC responsibly. When costs are lower than projected, we will continue to return premium through our dividend program.

In keeping with that commitment, we are pleased to announce that ophthalmologists [actively] insured with OMIC on 12/31/2023 will receive a 5% dividend credit applied to their 2024 renewal premium. This credit will add to the $102 million in policyholder dividends already returned to policyholders over the years as a result of our favorable claims defense results.

With much appreciation, we acknowledge your continued support of OMIC.