A.M. BestTV: U.S. Medical Professional Liability Insurance Sector Remains Profitable Despite Declining Premiums

OLDWICK, N.J.--()--In this A.M.BestTV episode, Dan Teclaw, senior financial analyst, A.M. Best, reviews a new Best’s Special Report that examines the financial performance of the medical professional liability insurance (MPLI) sector. Click on http://www.ambest.com/v.asp?v=medmal517 to view the entire program.

The Best’s Special Report states that the current MPLI market offers exciting opportunities, but is fraught with challenges, as insurers are competing on rates. However, a favorable underwriting environment does help.

“In 2016, direct premiums for MPLI writers declined, and unfortunately, this trend has been going on for a number of years,” said Teclaw. “The declining trend is due to the sector’s strong profitability, which increases competition and causes rates to be cut. Also, there is a smaller pool of potential insured policyholders, as physicians go to hospitals and larger groups that might carry their own self-insured retentions. All of these things are negatively impacted premium levels.”

Although operating performances and reserve releases were strong in 2016, Teclaw sees the future as a challenging one for MPLI.

“Competition, the on-going underwriting pieces, the investment environment that remains weak, tort reform and the possible changing federal health care program are all challenges MPLI will have to address in the future,” he said.

A.M. Best will host a webinar focused on the state of the MPLI market. This complimentary event will take place on Thursday, May 11, at 1:00 p.m. (EDT). To register go to http://www.ambest.com/webinars/medical17.

Recent episodes of A.M.BestTV include:

  • RIMS: Technology, Process, Analytics and Competition: The Four Horsemen of Disruption: At the RIMS conference, insurance leaders agreed that the insurance industry is in for major changes, and that the end result probably will be an industry that is leaner and more measurable: http://www.ambest.com/v.asp?v=rims6417nc.
  • RIMS: Butler Students Launch an Insurance Captive: At the RIMS conference, a team of students at Butler University and their advisers report that running their own insurance operation can be enjoyable, but challenging: http://www.ambest.com/v.asp?v=rims5417nc.
  • RIMS: Mass Cyberattacks Would Cross Coverage Lines, Put Insurers to Test, Say Cyber Specialists: At the RIMS conference, a panel of insurance professionals that specialize in cyber insurance say the growing number of widespread attacks could put insurers' capacity to the test: http://www.ambest.com/v.asp?v=rims4417nc.
  • RIMS: Mergers &Acquisitions Appear Poised for New Cycle, Say Insurance Execs: At the RIMS conference, a panel of insurance executives said industry merger & acquisition activity dipped during the most recent election cycle, but may be poised to resume: http://www.ambest.com/v.asp?v=rims3417nc.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Lee McDonald, +1 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald, +1 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com