Shared Success: How MICA’s Policyholder Dividend Demonstrates 50 Years of Stability and Trust
When physicians founded MICA in 1976, they sought an alternative model, one rooted in mutual risk sharing among physicians, not dependence on commercial insurance markets.
At the time, traditional insurers were retreating from medical professional liability coverage, leaving physicians across Arizona perilously exposed. Under the leadership of Dr. Jack Brooks, physicians came together to build an insurer grounded in shared responsibility, professional accountability, and a long-term commitment to one another.
That founding principle has guided MICA for nearly fifty years. This is evident not only in the company's approach to risk management and claims handling, but notably in its longstanding practice of distributing dividends to its members.
A Reflection of Strength and Stewardship
MICA’s philosophy with respect to policyholder dividends grew naturally from its business principles, which emphasize careful underwriting, prudent risk management, sound claim reserving, disciplined investment practices, and the responsible sharing of success when results allow.
As MICA celebrates its 50th anniversary, the company’s record of sharing success with members stands out. While dividends are not guaranteed, MICA has declared them for 21 consecutive years, returning $762 million to members since inception. For a solo family physician, that has translated to an estimated $60,000 or 24% in savings over the past two decades, reinforcing the long-term value of the mutual model.
Over the years, the MICA dividend has evolved into more than a financial advantage. It now serves as a clear indicator of stability within an otherwise volatile industry. Through insurance market cycles, shifts in how medicine is practiced, changes in tort law, and economic downturns, MICA’s Board of Trustees has prioritized sustainable, long-term value rather than short-term gains.
That commitment has been upheld even during extraordinary periods of pressure. For example, early in the COVID-19 pandemic, when courts closed and medical practices faced unprecedented business and financial pressure, MICA declared an extraordinary $12 million dividend. The decision provided timely relief and reaffirmed that members come first, particularly when conditions are most uncertain.
A Partnership That Endures
For physicians like Dr. John Bass, who practiced plastic surgery for over three decades, dividends became a quiet but meaningful sign of trust. “If we had a good year, we got a dividend,” he said. “That doesn’t happen in for-profit insurance. At MICA, success was shared.”
That perspective reflects the deeper value of a mutual model. Physicians are not simply purchasing coverage, they are part of a unique model collectively supporting one another, financially and professionally. When physicians know their insurer is strong, stable, and aligned with their interests, they are better able to focus on what matters most: patient care, sound decision-making, and long-term practice sustainability.
As Tracy Johns, Head of Compliance for Arizona Community Physicians, explained, “With MICA, I have support, context, and confidence.” That kind of partnership helps physicians make safer decisions, protecting both their practices and the patients they serve.
A Legacy That Carries Forward
Fifty years after Dr. Brooks and his colleagues formed MICA, the dividend remains a living expression of their original promise. Physician-led mutuality is not an abstract ideal; it is a practical and resilient model for stability in modern medicine. As MICA looks ahead, the principle behind the policyholder dividend endures.
Because MICA is owned by its members, every dollar returned represents more than a financial benefit. It reflects trust that has been earned, sustained, and reaffirmed across five decades.