OLDWICK, N.J.--(BUSINESS WIRE)--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.
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