Created by Physicians, for Physicians
In the mid-1970s, physicians nationwide faced an insurance crisis that threatened their very livelihood. With claims and judgments escalating dramatically, many commercial insurance companies ceased to offer medical professional liability coverage. The practice of medicine was under attack. Something had to be done.
Tennessee Physicians Create an Innovative Solution
Rising to the challenge in 1975, a group of Tennessee physicians formed one of the first organizations in the nation created by physicians to insure their own medical liability risk. To raise the initial capital, each physician who applied for insurance made a one-time contribution.
In May 1976, SVMIC was licensed by the state of Tennessee and wrote its first policy. By the end of 1977, the company insured 3,840 Tennessee physicians. A year later, SVMIC began operating at a surplus. Collecting capital contributions from new member physicians was no longer required, and between 1979 and 1981, all the initial contributions were returned to those physicians.
By the end of 1988, SVMIC was insuring 6,528 Tennessee physicians and paid its first dividend to policyholders. The company also began conducting seminars for physicians as part of its ongoing commitment to identify and correct the root causes of medical malpractice.
New Growth and Opportunity
In 1989, SVMIC began insuring physicians in Arkansas and was warmly welcomed after the state’s most dominant commercial carrier announced an enormous rate increase. Virginia was added in 1991, and Kentucky in 1996. In addition, SVMIC also added practice management services in 1996 to serve as a problem-solving resource for physicians and their practices.
In 2001 one of the largest malpractice insurance providers in Arkansas and a major player in other states, pulled out of the market. Shortly thereafter, several other medical liability carriers went into receivership. The situation forced many physicians in the Southeast to look for another insurance provider, and once again, SVMIC answered the call for help.
The Strength to Serve
Today, SVMIC is honored to insure over 14,000 physicians in Tennessee, Arkansas, Virginia, Kentucky, Georgia, Alabama and Mississippi. SVMIC is one of the largest and most successful insurance ventures of its kind, with an “A" (Excellent) rating from the independent rating agency, A.M. Best. No physician-owned liability insurer has a higher rating.