Medical liability insurer MMIC Group Inc. (MMIC), headquartered in Minneapolis, Minn., has received final regulatory approval to change from a stock holding company to a mutual insurance holding company.
The move “will enhance our ability to succeed in a challenging marketplace by making new investments and partnering with other firms,” MMIC President and Chief Executive Officer Bill McDonough said in the company’s announcement. “This will also enhance our ability to affiliate with other mutual firms owned by physicians, hospitals or other providers, giving us the scale to compete effectively at a time of increasing cost pressures on mutual medical liability insurers.”
McDonough added that MMIC has been a stock holding company, it has operated “like a mutual for many years, consistently paying dividends to all customers.” McDonough said.
MMIC this year earlier received approval for the change from its physician policyholders and shareholders. That was followed by the recent, final approval from the Minnesota Department of Commerce.
McDonough explained that the change will make it easier for MMIC to share such “back office” costs as technology, investments, reinsurance, and actuarial services with other firms. It also, he said, will enable MMIC to make investments in new products and services to meet the demands of the changing health care industry.
MMIC Group Inc. provides professional liability insurance and health information technology services to physicians, clinics, hospitals and other health care facilities and systems, primarily in Minnesota, Iowa, Nebraska, Kansas, Missouri, North Dakota, South Dakota and Wisconsin.
Source: MMIC
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