Tag Archives: Brad Parker

First quarter financial results for medical professional liability specialty writers

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.

2014 year-end results for medical professional liability specialty writers

There were no distress signals for medical professional liability writers in 2014, and the year adds to what has now become more than a decade of continuous profitability. Direct written premium declined in 2014 for the eighth straight year. The total is down 28% from its high of almost $7.1 billion in 2006. And last year represents the 11th consecutive year of positive operating profit. Milliman consultants Brad Parker and Chuck Mitchell provide some perspective in this article.

This article was originally published in the April 2015 issue of the Medical Liability Monitor.

Third quarter financial results for medical professional liability writers, expectations for year-end results

Medical professional liability (MPL) specialty writers are continuing to benefit from large redundancies in prior-year response levels as they have for several years. But a not so subtle transformation has emerged in the past few years. That transformation is that reserve runoffs are no longer bolstering the profit level. In fact, it could be argued that reserve runoffs are responsible for the profits as a whole. Milliman’s Brad Parker and Chuck Mitchell provide perspective in this article.

The article was originally published in the Medical Liability Monitor.

First quarter financial results for medical professional liability specialty writers

Based on the collective financial results of 81 insurers specializing in medical professional liability (MPL) coverage, another good year appears to be in the offing for 2014, even as profit margins will likely decline relative to the levels seen in recent years. Pricing pressure continues to be fueled by increasing surplus levels and the desire to maintain exposures against increasing competition and the potential migration of physicians to self-insured employment settings. The largest remaining uncertainty lies in the likelihood that prior-year reserve releases can be sustained to the extent observed in recent years.

For more perspective download and read this article.

The article was originally published in the July 2014 issue of the Medical Liability Monitor.

A decade of profitability: 2013 year-end results for medical professional liability specialty writers

The medical professional liability (MPL) market has sustained favorable financial results again in 2013. This article reviews the 2013 results overall, attempts to glimpse what the year-end results might have in store, and works to detect changes in the current trends that continue to produce stellar financial results for the MPL segment of the insurance industry.

MPL specialty writers, as a whole, enjoyed yet another outstanding year financially. Though the continuation of these outstanding financial results is unsustainable long-term, there is still no clear indication from the year-end 2013 financial statement data that suggests these trends are subsiding.

This article was originally published in the April 2014 issue of the Medical Liability Monitor.

First quarter financial results for medical professional specialty insurers favorable

The medical professional liability (MPL) market has sustained very favorable financial results in the face of gradually declining premium and increasing combined ratios. The saving grace for the market continues to be its sizeable reserve releases, which have exceeded $1 billion in each of the last six years for the collection of MPL writers that we consider in our analysis. Through the first quarter of 2013, we are seeing a continuation of the financial trends of recent years. Our consultants project another profitable underwriting year for the composite in 2013, although profit margins will likely decline relative to recent years should the current financial trends continue. Pricing pressure continues to be fueled by increasing surplus levels and the desire to maintain exposures against increasing competition and the migration of physicians to self-insured employment settings. The largest remaining uncertainty lies in the sustainability of prior year reserve releases at the level we’ve observed in recent years.

Download and read the entire article here.

This article was originally published in the August issue of the Medical Liability Monitor.