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What is the history of OMIC, and why should ophthalmologists support it?

During the 1970s and 1980s, malpractice claims against physicians rose dramatically, causing a crisis within the insurance industry. At the time, the Academy sponsored a large commercial carrier, Cigna, to market to and provide coverage for its members. When the company abruptly withdrew from the malpractice insurance market, threatening the livelihood of thousands of ophthalmologists, the Academy realized that its members were at the whim of an industry that had little regard for, or interest in, the long-term well-being of the profession. Timing was crucial because leaders within ophthalmology had already suspected insurance companies were subsidizing higher risk medical specialists by unfairly charging them premiums that were not reflective of their claims experience. The Academy Board began exploring the feasibility of forming a freestanding independent professional liability carrier exclusively for ophthalmologists.

OMIC opened for business in 1987. There were approximately 50 malpractice insurance companies operating at the time, many that had been formed during the preceding decade also in response to the worsening insurance crisis. Many were state or region specific, few offering coverage nationally, almost none devoted specifically to a single medical specialty.

OMIC’s mission was to stabilize the insurance market for ophthalmologists, ensure the availability of insurance and appropriate pricing, and provide superior products and services created specifically for the specialty.

OMIC grew exponentially and quickly became the largest insurer of ophthalmologists in the United States. As its expanding ophthalmic-specific claims data became a valuable resource from which to identify trends and create resources for ophthalmology, the promotion of patient safety and quality of care were added as key OMIC missions.

Prior to the formation of OMIC, the availability of insurance was not guaranteed in all states, and ophthalmologists were sometimes forced to move or modify their practice in order to obtain or maintain coverage. OMIC is available nationally and portable if an ophthalmologist moves between states, which has become more common as medicine transitions to larger multi-state groups. While solo-practice insureds increased 75% from 1992-2024, group-practice insureds increased 825% during the same period.

OMIC’s entrance into the market marked a prolonged period of relative pricing stability. The average national mature rate for $1M in coverage for a full-time full surgery ophthalmologist was $9,398 in 1992 and $10,400 in 2024, despite an increase in the CPI of 220% during the same period.

Similar to a non-profit, OMIC is a mutual insurance company. This means it is owned by its policyholders and its purpose is to provide cost-effective insurance to its members rather than to generate profits for its shareholders. Mutuals, like OMIC, regularly return to their policyholders any premium above what is necessary to prudently run the company. OMIC has returned $102 million to policyholders through dividends since inception – an average of 8% per insured per year. This cumulative return from 1992 to 2024 was approximately $25,750 per insured or equal to two and a half years of coverage at the average annual premium during the same period referenced above. Only about a third of malpractice carriers issue dividend returns.

OMIC’s mission is to protect American Academy of Ophthalmology members, eye care entities, and patients by providing comprehensive, affordable liability insurance and best-in-class risk management and claims defense services. In addition to pricing stability and coverage availability, OMIC has supported the profession in many other ways.

Defending the Profession. OMIC vigorously defends all non-meritorious claims against ophthalmologists. Settling otherwise defensible claims as a cost-savings tactic only encourages more claims. OMIC’s longest-defended case lasted 20 years, was allowed to proceed to a state supreme court 4 times, and cost more than a million dollars to successfully defend the insured without a payment to the plaintiff. Money is well-spent when plaintiff attorneys are on notice that the profession will be defended.

Patient Safety and Risk Management. OMIC has produced critical resources to enhance eye health care, patient safety, and informed consent. Although our resources are developed and maintained exclusively for insureds, requests for specific forms may be made by contacting us at riskmanagement@omic.com.

Research and Support. OMIC provides significant financial contributions to the American Academy of Ophthalmology and its foundations and maintains partnerships with most state, subspecialty, and specialized-interest ophthalmic societies in the United States. OMIC’s financial support has been crucial to the production and dissemination of resources in multiple languages. OMIC issues approximately $2 million in premium credits each year to insureds through its society partnership program and provides additional annual financial support for ophthalmic organizations around the country.

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