Through three quarters of 2015, the composite’s direct written premium level is roughly 5% below premium levels at the same point in 2014. The prolonged profitability enjoyed by the medical professional liability (MPL) market continues to be driven by low claim frequency, stable loss severity, and, most notably, large releases in prior coverage years, which is due to conservative reserving practices. With a projected 2015 reserve release exceeding $900 million, it appears the MPL market’s run of profitability will remain intact for the foreseeable future. Milliman’s Brad Parker and Chuck Mitchell provide some perspective in this article.
This article was originally published in the December 2015 issue of the Medical Liability Monitor.