Oklahoma's largest medical-liability Co. gets 83% rate increase over 3 yrs.

(12/4/2023) -- A.M. Best reports that Oklahoma's largest provider of medical-liability insurance has received permission for a cumulative rate increase of 83% over the next three years, a hike that's not "inadequate or unfairly discriminatory," according to state regulators.

According to A.M. Best, after a public hearing held Nov. 18, Oklahoma Insurance Commissioner Carroll Fisher approved the increase for Physicians Liability Insurance Co.--a not-for-profit, captive company owned by the Oklahoma State Medical Association--but chose to spread it out over three years beginning Jan. 1, 2004, according to the insurance department. The action gives physicians time to better absorb the hike, Fisher said in a statement. "The requested change is actuarially sound and will be needed in the years to come," Fisher said. "Phasing in the rate change is both feasible and reasonable, and it demonstrates to all concerned that we have looked at every option possible."

Fisher said reviews of the filing by him, his staff and outside consultants showed that the increase is necessary for the company's long-term stability. However, testimony at the hearing and a series of letters sent by doctors around the state indicated the large change would be difficult to absorb, he said.