How MagMutual Is Making Medical Malpractice Insurance Costs More Equitable

MagMutual PolicyOwners:

At MagMutual, our guiding principle has always been clear: we provide the best protection, advice, service and claims support at the lowest sustainable cost. Every step we take to refine our underwriting is about keeping that promise to you. 

As a physician, I understand how mysterious insurance pricing can feel—and why there’s stigma around it. At MagMutual we’re working to remove that stigma by bringing more transparency to the process. With tools like OneModel®, benchmarking and limit-and-deductible comparison tools, we offer greater visibility to our PolicyOwners. With that in mind, we’ve enhanced the way we evaluate risk to make pricing more precise and equitable for you.  

This change is beneficial to you while ensuring the long-term health of the company you depend on to protect you.

Why We’re Changing Our Physician Liability Insurance Cost Model

In the past, physician malpractice insurance rates were determined mostly by averages—by state, by specialty and sometimes by where the care takes place—clinic or hospital. While that method was simple, it didn’t account for meaningful differences among physicians and across practices.

Our new model moves beyond averages to reflect risk more specifically, ensuring each PolicyOwner pays only for the risk they bring—no more, no less. This shift is better aligned with each PolicyOwner’s actual risk and strengthens the stability of the mutual as a whole.

How Better Data Shapes Insurance Rates

MagMutual considers more risk factors than other insurers, giving us a clearer view of liability exposure. Instead of relying only on state or specialty, our underwriting model incorporates factors that make a real difference in liability and risk.

These include: 

• Types and volume of procedures performed
• Quality ratings of practicing facilities 
• Characteristics of the treated patient population
• Where the care takes place—clinic or hospital

Each of these factors plays a meaningful role in determining both exposure and the overall cost of medical malpractice insurance for each physician.

The Benefits to PolicyOwners 

The risk-based pricing approach ensures that malpractice insurance costs reflect the realities of your practice more accurately, giving you greater confidence that your coverage is both equitable and dependable.

That means: 

• Fairer pricing: Each PolicyOwner pays for their specific risk. 
• Greater transparency: Pricing is easier to understand and explain. 
• Sustainable coverage: By aligning price with risk, we strengthen our ability to keep delivering protection, advice, service and claims support at the lowest possible cost.

Together, these benefits ensure that your coverage is not only aligned with your own risk but also strengthens the mutual company we all rely on.

Looking Ahead

Fairness isn’t a finish line. It’s an ongoing commitment. We’ll continue refining how we assess and price risk so that our approach remains transparent, dependable and aligned with the values of our mutual company. 

As your partner in protection, we’re constantly evolving to serve you better and smarter. 

Sincerely,

Bill Kanich, MD, JD

October 2025