From the Desk of the CEO

From the Desk of the CEO

The first half of 2012 was an eventful one for Missouri physicians.  On the heels of market upheaval after suspicions were raised as to some key market players, the Missouri Supreme Court overturned the $350,000 cap on non-economic damages that was enacted in 2005 as part of Tort Reform.  Now, medical providers are faced with the daunting task of obtaining an amendment to the Missouri Constitution to put the cap back in place.

Statistically, we know the lifting of the damage cap will cause claim counts to increase.  And, while we have no current plans to raise rates, we know that market rates will inevitably rise.  If, as is often the case, the large, out-of-state stock carriers with no commitment to Missouri decide to leave, that will put only more upward pressure on rates.

These developments make the selection of a medical professional liability carrier all the more important, and it’s in times like these that our policyholders enjoy knowing they’re with us.  From focusing on only a select number of medical specialties and our highly selective underwriting, to our reinsurance from Lloyd’s of London for all claims over $200,000, we are well-positioned to withstand these adverse market changes.

Companies that take on all risks regardless of medical specialty or individual underwriting history are destined to be forced to raise rates.  Similarly, if the insurer has no reinsurance protection, that too is certain to force rating changes, if not call into question the company’s viability.

We believe in earning your trust, and that’s what we’ll continue to do – by remaining the same stable and reliable choice we’ve always been, and continuing on the solid course we began many years ago.


Jim Bowlin
Chief Executive Officer