Has fortune turned its back on MPL insurers?

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.