Chicago-based ISMIE Mutual Insurance Co., Illinois' largest writer of malpractice coverage for physicians, says it will raise its base premium rate by 35.2%, effective July 1.
Letters to policyholders are in the mail this week, the company says in a release.
The company adds that some doctors will see actual increases "well in excess" of 35% because ISMIE is reducing discounts for doctors as well.
The company reports that in the last two years, its average payout per claim rose 59% to $612,000, and the number of reported cases jumped 36% over the last nine months.
"We cannot sustain these loss trends without raising premiums substantially," says company Chairman Harold Jensen, M.D., in the release.
The carrier, a mutual insurance company run by physicians, says it took in about 2,000 new policyholders in 2002 as commercial carriers exited the state.
The company already imposed a moratorium on new business on Jan 1.