In this article, Milliman’s Eric Wunder and Brad Parker summarize some key financial results for a composite of medical professional liability specialty writers through the second quarter of 2018. The 12-year decline in direct written premium finally reversed course in the first quarter of 2018 and second quarter premium levels have followed suit. The composite brought in $102 million (3.6%) more premium through six months than through the first six months of 2017. This is the largest year-over-year increase in written premium since December 2005.
This article was originally published in the September 2018 issue of Medical Liability Monitor.
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.
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.
The medical professional liability (MPL) market began 2016 experiencing similar trends to those seen in recent years. The first quarter of 2016 has seen the market maintain favorable calendar-year financial results despite declining premium volume and steadily increasing operating ratios. If the historical relationship between first quarter and year-end holds, MPL speciality writers can expect weaker financial results, compared with recent years, yet still an overall profitable year. This article by Milliman’s Brad Parker and Eric Wunder provides more perspective.
This article was originally published in the July 2016 issue of the Medical Liability Monitor.
Medical professional liability financial results for 2015 are telling a tale similar to the one told in 2014. For calendar year 2015, this segment of the casualty insurance industry can boast yet another healthy bottom line, but we should take note that declines in both the premium level and the amount of favorable annual reserve development appear to be taking their toll on overall net income. Total written premium during 2015 dropped by 4.4% when compared with 2014, making it the largest single-year percentage decline in premium since 2007-2008. Steadily declining premium levels have contributed to the erosion of the composite’s annual underwriting profit. The composite’s combined ratio reached 95% in 2015, its highest mark since 2005. Milliman’s Brad Parker and Eric Wunder provide some perspective in this article.
This article was originally published in the December 2015 issue of the Medical Liability Monitor.