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| Our History |
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Our Modest Beginnings
It the late 1960s, when medical liability insurance was becoming a rare and expensive commodity, seven Southern California county medical societies banded together and formed the Southern California Physicians Council (SOCAP) as a vehicle for obtaining professional liability insurance for its members.
In the five years between the establishment of SOCAP and the formation of SCPIE, medical society physician members endured a host of premium increases from commercial insurance carriers.
In September 1975, after learning that one commercial carrier was raising its rates by 486%, SOCAP authorized a feasibility study regarding the potential of a physician-owned professional liability insurance company. In late November of that year, SOCAP approved a proposal calling for the creation of such a company: Southern California Physicians Insurance Exchange (SCPIE).
SCPIE began its operations on January 1, 1976, as a reciprocal or interinsurance exchange with 1,434 policyholders. It offered a single product (claims-made and
-reported policy for solo physicians) in a single state (California).
During the two decades after our genesis, SCPIE continued to add more insureds to its book of business and expand its product offerings.
Our Transformation into a Public Company
After assessing the drastic changes in the healthcare delivery environment, such as the increase in consolidations and the creation of large, integrated healthcare companies covering many states and regions, we believed that strategically, it would be in the company’s best interests to restructure as a public company. The capital raised from the initial public offering would allow us the flexibility to expand into other states, as necessary.
On January 30, 1997, the stock of SCPIE Holdings Inc. launched on the New York Stock Exchange (NYSE: SKP). At the same time, the Southern California Physicians Insurance Exchange was merged into SCPIE Indemnity Company, and SCPIE Holdings Inc. became the parent of several subsidiaries. Together, the business entities comprise The SCPIE Companies.
Today, SCPIE is one of the leading carriers of professional liability insurance in California (based on direct premiums written) with more than 10,000 policyholders. We are currently writing professional liability policies in California and Delaware, with the possibility of expanding into other states in the future.
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