Colorado Medical Society
http://dev.cms.org/articles/copic-comment-sept-oct-2015/COPIC Comment: COPIC and MagMutual form new alliance
Tuesday, September 01, 2015 12:38 PM
COPIC is always striving to improve the level of service we offer insureds; therefore, we are excited to announce that COPIC and MagMutual, the Southeast’s leading medical liability provider, are forming a new alliance to share industry knowledge and promote best practices.
The arrangement is designed to reinforce a broader commitment to improve health care outcomes through patient safety and risk management education, and develop improved resources for the health care community. It will become effective in fall 2015.
What are the benefits of this alliance?
The alliance is focused on leveraging collective knowledge, experience and services to not only benefit policyholders, but also to better position COPIC to address the needs of a changing health care landscape. By maximizing the strengths of both companies, we anticipate the following benefits for insureds:
- Enhanced insight and experience on patient safety and risk management issues that translates into knowledge passed on to insureds.
- Improvements in technology platforms.
- Development of new resources and tools to address current trends in health care.
- Cost-sharing efforts designed to keep premiums affordable.
Why was MagMutual selected as a partner?
COPIC’s leadership team and board of directors determined that aligning with a like-minded medical liability carrier would better position us to address the future of health care and continue to deliver a high level of service. We are confident that MagMutual will serve as an excellent partner because we share many of the same values and history. Both companies were founded by physicians, have cultivated similar cultures, are recognized for their excellent customer service, and are committed to improving outcomes through patient safety and risk management education and resources.
Will this alliance change how COPIC operates?
We are not planning on consolidating business operations, but rather, sharing our knowledge and expertise with each other in a way that mutually benefits our policyholders. Rest assured, we expect business to continue as usual for COPIC insureds. Under the terms of the agreement, both companies will invest in each other’s success. MagMutual will acquire a 25 percent minority interest in COPIC, and COPIC will act as a reinsurer for a portion of MagMutual’s written premium. Each company will retain its individual brand, trusted employees, and leadership and board of directors.
Will policyholders see an increase in premiums as a result of this alliance?
COPIC policyholders will not see premium increases due to this alliance, rather, we anticipate many added capabilities and efficiencies. Policyholders will continue to work with the same COPIC staff who serve them currently.
Can you provide some more details about MagMutual?
- The company was founded in 1982 and is based in Atlanta.
- It is licensed to provide medical liability insurance in the following states: Ga., Ala., Ark., Fla., Ky., N.C., S.C., Tenn., Va., Ind., Md., Mich., Ohio, W.Va.
- It insures more than 19,000 physicians and 272 hospitals and facilities.
- There is no overlap in the states where MagMutual provides insurance and the states where COPIC does business.
- MagMutual is rated A (Excellent) by A.M. Best, the leading insurance industry rating agency; this is the same rating that COPIC has maintained for more than 15 years.
We are very excited about this alliance and the opportunities it will create. As always, we want to thank all of our insureds and partners for their ongoing commitment to COPIC and our mission.
Please note: The agreement is subject to approval by the Colorado Division of Insurance and the Georgia Department of Insurance. In addition, the agreement is subject to the consent of the Federal Trade Commission and Department of Justice. Pending those approvals, as well as finalizing closing documents, the agreement is expected to be operational this fall.