Medical Professional Liability (MPL) Insurers May Find Value, Not Price, is Best Medicine
August 23, 2019
After Several Years of Soft Pricing and Low but Steadily Increasing Losses, MPL Insurers Must Find New Growth Strategies as Market Evolves
HARTFORD, CT – August 23, 2019 - Leading global investment management firm Conning has issued an Insurance Insight from its Insurance Research group that highlights the issues facing medical professional liability (MPL) insurance carriers as they prepare for a changing healthcare market.
Conning’s Insurance Insight “Diversification in the Medical Professional Liability Industry” reports on the industry’s history and recent diversification efforts. It also offers the firm’s views on what may be a better path forward for many MPL companies.
“Profitable growth will probably require noninsurance diversification so price is not the only factor in the insurance purchase,” said Bill Burns, ACAS, MAAA, the article author and a vice president in Conning’s Insurance Research group. “We are aware of many companies that are dedicating significant time and resources in planning their next steps.”
The previous 20 years has seen a period of rising rates and record profitability, followed by a time of rising combined ratios and falling equity returns and reserve margins, Burns said. The companies that have survived over the years have “appeared to learn their lessons from prior inflection points,” he noted, and are seeking to leverage relatively strong capital bases to build sound strategies for the longer term.
Conning (www.conning.com) is a leading investment management firm with approximately $145 billion in global assets under management as of June 30, 2019.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of June 30, 2019, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, Cathay Securities Investment Trust Co., Ltd. (“SITE”) and Global Evolution Fondsmæglerselskab A/S and its group of companies (the “Global Evolution Companies”). The Global Evolution Companies are affiliates of Conning. SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities
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