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Throughout its 30+ years of insuring medical professional liability risks, MICA has clearly demonstrated that it has the financial strength to successfully accomplish its mission in all market cycles. MICA’s considerable strength is due to its commitment to a fiscal philosophy that calls for actuarially sound rates, appropriate loss reserves, and the judicious use of financial resources.

Lower Claims Frequency Reduce Loss Costs
Overall frequency of active claims and suits continued to decline in 2007, both in absolute numbers and on a per 100 physician exposures basis. Average defense cost per claim/suit is also rising. This year’s drop in frequency was so significant that it eclipsed increasing loss severity, which continued to rise, but at a slower pace than in the earlier years of this decade.

$40 Million Dividend to MICA Policyholders
MICA’s policy of paying dividends funded by favorable development on prior years’ loss reserves is consistent with the company’s objective of keeping the cost of coverage as low as possible while adhering to prudent financial and insurance practices. After reviewing the reduction in 2007 loss costs, MICA’s Board of Trustees authorized payment of a $40 million dividend to active, qualifying policyholders. Dividends paid since 1988 now total $253 million.

2007 Audited Financial Statements
MICA’s attached financial statements are prepared in accordance with statutory accounting principles (SAP), in conformity with practices prescribed or permitted by the Arizona Department of Insurance. SAP provides a basis of accounting designed to meet the concerns of regulators and policyholders. Unlike generally accepted accounting principles (GAAP), which emphasizes an entity’s ability to generate earnings, SAP focuses on an insurer’s ability to pay future claims.

Click here to view MICA's 2007 Statutory-Basis Financial Statements and Independent Auditors' Report.