In 2017, the medical professional liability market experienced another profitable year—with increases in net income and surplus relative to 2016, driven by promising investment performance. Favorable reserve development on prior coverage years still contributes a large portion to the healthy bottom line, as it has for more than a decade, and the decline in direct written premium has slowed. Milliman’s Eric Wunder and Brad Parker offer some perspective in this article.
The profitability experienced by the medical professional liability (MPL) industry since the mid-2000s, and the resulting strengthening of balance sheets, has not gone unnoticed by A.M. Best. This article by Milliman’s Eric Wunder and Sarah Rice examines the A.M. Best financial strength ratings as well as A.M. Best’s outlook for MPL specialty insurers.
This article was originally published in the 2018 First Quarter issue of Inside Medical Liability.
In 2016, the medical professional liability (MPL) industry’s profitability was still strong, though income was derived from slightly improving investment income and still favorable prior year loss development. Current policy year underwriting results deteriorated by three points relative to 2015, likely owing to continued price competition. The 2016 operating ratio for MPL insurers stayed below the property/casualty industry average. The question abounds as to how much longer prior year reserve releases will be able to cushion MPL results. Milliman consultants Richard Lord and Stephen Koca provide some perspective in this article.
This article was published in the 2017 Fourth Quarter issue of Inside Medical Liability.
This article by Milliman consultants Eric Wunder and Brad Parker summarizes some key financial results for a composite of medical professional liability specialty writers through the second quarter of 2017. The decline in premium isn’t slowing down, and favorable reserve runoff from prior years is providing less financial relief. Future investment results look promising.
This article was originally published in the September 2017 issue of the Medical Liability Monitor.
This article by Milliman’s Eric Wunder and Brad Parker summarizes key financial results for medical professional liability writers from the first quarter of 2017. First-quarter premiums declined for the 11th consecutive year, dropping below the $2 billion mark for the first time since 2002. The 3.1% decrease relative to Q1 2016 is consistent with the average annual decrease seen during the past five years.
This article was originally published in the July 2017 issue of the Medical Liability Monitor.
While on a downward trend, movement in the medical professional liability (MPL) industry has occurred at a relatively slow pace. Surplus grew slightly in 2016, leaving the MPL industry in a financial position roughly consistent with where it has been for the past half-decade. Milliman consultants Chad Karls and Susan Forray provide more perspective in their recent Inside Medical Liability article.