3 years ago

NORCAL Group 2014 Annual Report

A Message from the Chair

A Message from the Chair and the CEO In Service of You, Our Policyholders Over the years, the NORCAL Group of companies has seen many changes in the practice of medicine and we have continually adapted to meet those evolving needs—introducing new products, refining operations, improving services, and now expanding to a national scale. Even as we continue our evolution, our priorities are as clear today as they were at our founding. We are a policyholder-focused company—there are no shareholders, no quarterly earnings calls, and no analysts’ projections to meet. For NORCAL it has always been and will always be about serving the best interests of you—our policyholders. StAYIng Ahead to Better Serve You The landscape of our healthcare system continues to change and become more complex. From new healthcare laws and the rise of cybercrime to the persistent threats against tort reform, the impacts to the practice of medicine are pervasive and unrelenting. NORCAL works continuously to anticipate this dynamic environment by remaining at the forefront of emerging issues and adapting to meet your changing needs. For NORCAL it has always been and will always be about serving the best interests of you—our policyholders. In 2014, we introduced a versatile new policy to better protect your practice with enhanced cyber liability and administrative defense coverage. We continued to be a staunch advocate for physicians’ rights and tort reform, serving as the largest contributor to the No On 46 coalition, to help defeat Proposition 46 in California along with our 700-strong coalition partners. We defend your community and we vigorously defend you. In 2014, 89% of claims against our insureds were resolved without indemnity payments—one of the highest rates in the industry. * Includes physician completions only. Source: Accreditation Council for Continuing Medical Education (ACCME), List of All Currently Accredited CME Providers. 4 2014 NORCAL Group Annual Report

Our Risk Management services continued to be among the strongest in the industry. Our continuing medical education (CME) participation is more than double that of the closest competitor.* In 2014, we awarded over 35,470 CME certificates. Strength and Stability to Better Protect You Our ability to support and defend the critical issues that impact your practice can be attributed to our years of stability, strength and solid financial position. We are proud that we were again affirmed with an “A” (Excellent) rating by A.M. Best, a rating NORCAL Mutual has held for more than 30 years. In 2014, we returned more than $14 million in dividends to our members due to their practice of good medicine and the sound business practices of the NORCAL Group of companies. To date, more than $500 million in dividends have been declared and paid. We are building on the strength of our foundation and growing and changing for you, moving from three regional companies to one national medical professional liability insurance (MPLI) company that is large enough and agile enough to serve the complex and varied needs of our policyholders. From the solo practitioner to the large multi-specialty group, we are committed to you every day, and are unwavering when you need us most. We are proud that you have put your trust in us and we look forward to another great year together. Thank you very much for your business and your confidence in our company. Jaan Sidorov, MD, MHSA, FACP Chair Scott Diener President & Chief Executive Officer