Articles Tagged with State Volunteer Mutual Insurance Company

SVMIC continues to enjoy wonderful profitability, even as the number of physicians it insures declines.

SVMIC – State Volunteer Mutual Insurance Company – is a physician-owned insurance company that was created over 30 years ago.  It has grown from a company with paid-in capital of $7,500,000 to a entity with a policyholder surplus (think: net worth) of $251,321,321.

Let me explain what that means.   Policyholder surplus is determined by subtracting reserves for claims payments and claims expenses from assets.  Each time a claim is made a reserve is set.  The size of the reserve is based on the severity of the claim, the likelihood of payment and the anticipated defense costs.  The amount reserved on a claim changes over time, but the idea is that the sum total of reserves should pay all existing claims and all future defense costs.  There is also a category of reserves known as IBNR – Incurred But Not Reported.  This is for claims that the company "knows" to be out there but have not yet been reported to the company.