State Volunteer Mutual Insurance Company will introduce a rate hike to its Physician Surgeon Medical Professional Liability program midway through the 2nd quarter of 2021. The carrier is aiming to introduce an overall 3% increase to its physician and surgeon rates, which was tentatively scheduled to go into effect on May 15 in Georgia. This will impact the carrier’s nearly $2.5 million in written premium within the Peach State, alongside its 206 policyholders within this market. This rate hike is notable as it follows a 21.69% reduction in rates, last implemented on Feb. 1, 2019.
Heavy competition within the medical professional liability segment in the southern market is attributed to this rate hike, with SVMIC noting actuarial data supplemented by competitors MAGMutual and The Doctors Company, with SVMIC specifically adopting MAGMutual’s rate relativity for one of its territories. Alongside the planned rate hike, SVMIC will also introduce a new Blanket (Shared) Excess rule to its playbook, tapping shared excess factors from competitor ProAssurance. This signals that SVMIC will be likely pursuing more excess premium in the coming months, though like other carriers within this segment, can be expected to be stringent with underwriting.
Expect rate hikes to continue throughout 2021. MedMal Direct Insurance Company has also scheduled a rate increase in Georgia, aiming for an effective date of June 1, with the company targeting an overall increase of 9.3%. This will impact the carrier’s over $2 million in written premium. MedMal Direct attributes this rate hike to a reevaluation of its book of business, as well as a need to limit its overall risk and loss impact. The carrier has parted ways with several accounts in recent years that led to disproportionate losses within its book of business. Expect the carrier to continue stringent underwriting as 2021 continues.
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