If the historical relationship between first-quarter and year-end financial results holds, medical professional liability (MPL) writers should be in store for another profitable year. First-quarter direct-written premium declined for the ninth consecutive year, falling to $1.8 billion. The 4.7% decline from the first quarter of 2014 is the largest single-year percentage drop since 2011 and is a full point higher than the average annual decline of 3.7% from 2006 to 2015. First-quarter 2015 development fell in line with that of the past two years. Milliman consultants Brad Parker and Chuck Mitchell provide some perspective in this article.
This article was originally published in the July 2015 issue of the Medical Liability Monitor.