NAMIC Insurance Solutions…NAMIC Insurance Company, Inc. and NAMIC Insurance Agency…working together for the benefit of The National Association of Mutual Insurance Companies (NAMIC) members and their business partners to provide critical professional liability insurance products focused on the mutual insurance industry. NAMIC Insurance Solutions is more than just a marketing name: it reflects the commitment of the staff of these two NAMIC entities to provide members and their business partners with solutions to their professional liability insurance needs.
From the smallest of farm mutuals to billion-dollar P&C companies, NAMIC Insurance Solutions is the source for the same outstanding service our policyholders pride themselves on providing their customers. We pride ourselves in providing creative coverage solutions that help our policyholders protect their employees, boards, and company.
NAMIC Insurance Agency
NAMIC Insurance Agency (Agency) is the sole distribution channel for NAMIC Insurance Company, Inc. (NAMICO) and the NAMIC Insurance Company Professional Liability Program. For more than 35 years, prior to the existence of NAMICO, the Agency specialized in and was committed to providing professional liability insurance for NAMIC member companies and their insurance agents.
The Agency is a subsidiary of NAMIC Services Corporation (NSC), NAMIC’s for-profit subsidiary. The Agency earns commissions, and the profit from its operations become revenue to NAMIC and a benefit to NAMIC members. The Agency is not only an outstanding source for members’ professional liability insurance, it also enhances the ability of NAMIC to carry out its member-driven mission.
The Agency is licensed in more than 40 jurisdictions in order to serve the NAMIC membership and their business partners. In addition to the Program products, the Agency is appointed by other insurers to provide Fidelity, Kidnap and Ransom, Surety Bonds for agents, and cyber liability insurance for the mutual insurance industry.
NAMIC Insurance Company, Inc.
NAMICO was organized in 1986 by the NAMIC in response to the liability insurance crisis of the mid-1980’s. Our sole mission is to provide policyholders with a stable and long term professional liability market.
The NAMIC Insurance Company Professional Liability Program offers a suite of products that includes:
- D&O and ICPL (company E& O) coverages for insurance companies
- Agent Errors & Omissions Insurance for member-appointed agents
- Employment Practices Liability Insurance, Trustee and Fiduciary Liability Insurance and Cyber Liability Insurance as well as a wide range of endorsements to provide effective solutions for professional liability insurance companies and their business partners.
NAMICO is an Indiana domiciled stock property and casualty insurance company, limited by its Articles of Incorporation to professional liability products. Shareholder approval is required to insure outside this niche. Due to this constraint, NAMICO doesn’t compete with our policyholders in other lines of business.
Currently, NAMICO is an admitted carrier in IN and KY, and authorized as a surplus lines carrier in nineteen other states. NAMICO utilizes a fronting relationship to provide coverage in states where NAMICO is neither admitted nor eligible to do business as surplus lines carrier, but retains direct control of underwriting and claims handling.
The NAMIC Insurance Company, Inc. (NAMICO) Reinsurance Facility (the Pool) was formed as a vehicle to reinsure the Company in order to provide adequate limits of professional liability coverage. The Pool is comprised of The National Association of Mutual Insurance Companies (NAMIC) member companies that are required to participate, as well as companies which voluntarily joined at the formation of the Pool to assist NAMIC members and support the Program.
As a condition of obtaining and maintaining insurance through the NAMICO program, any insurance company with legal authority to reinsure the Company for general liability exposures is required to reinsure the Company as a member of the Pool. This requirement is limited on a per-risk basis.
In addition, the NAMICO Board of Directors has established additional guidelines a company must meet for Pool membership.
- A minimum surplus of two million dollars ($2 million) and;
- An A.M. Best’s Rating of B+ or higher or a Best’s Financial Performance Rating (FPR) of 5 through 9.
Overall profits or losses of each participant depend on their share of premiums earned, losses and loss adjustment expenses incurred, commissions, and investment income earned.
The Company provides quarterly reports to the participants as to the status of the Pool. These reports identify the participant’s share of written premiums, unearned premiums, losses and loss adjustment expenses (for both paid and outstanding claims), commissions, investment income earned, and provisional payments for each Pool year in which the Pool member participates.
Over the life of the Pool, profit distributions have totaled approximately $54 million. In the past three years (2016, 2017, and 2018) profit distributions have totaled approximately $8.6 million. Past performance of the Pool does not guarantee future results.
The Pool has not only served as the backbone of the Program, to the benefit of all the Program’s policyholders, but as a rewarding venture for Pool participants.
NAMIC Insurance Company, Inc. (NAMICO) is rated “A” (Excellent), stable, by the A.M. Best Company. Surplus exceeded $28 million at the close of 2017. Program written premium has increased by almost 40% in the past five years, to just over $15 million.
NAMICO operates with a primary annual business goal of attaining an underwriting profit, a goal that is made possible by following appropriate underwriting guidelines. Insurance company policyholders must be members of The National Association of Mutual Insurance Companies , though membership in NAMIC does not guarantee a policy.
Company policyholders that meet the requirements of the NAMICO Reinsurance Facility (the Pool) are obligated to participate in the Pool, a venture which has generated more than $45 million in profits for its members.
2018 10 Year Financial Charts
2018 NAMICO Annual Report