The pressures on startup medical professional liability insurers
This is from Best’s Week:
In a recent A.M. Best webinar broadcast on May 12, Chad C. Karls, a principal and consulting actuary from Milliman, described the pressures that some start-up medical professional liability writers have faced.
Karls said there were 154 start-up medical professional liability companies that formed between 2002 and 2008. That group pertains to companies with 95% of their premium in medical professional liability and includes risk retention groups.
“We’ve seen 15 of those now go away in some shape or form,” Karls said during the webinar. “Fortunately, most due to acquisitions or voluntarily saying I’m done with my self-insurance program, the market is softening now and I’m going to set aside this captive or this risk retention group, whatever it is that I set up and 15 of those have gone away. So, that’s not an insolvency, but that has been one of the reasons why some of these companies are no longer in existence of the start ups that we identified.”