Conning Sees Pressure Rising on Medical Professional Liability (MPL) Carriers
May 06, 2020
In “Market Update” Video, MPL Analyst Bill Burns Examines Market Trends and Offers Insights
HARTFORD, CT – May 6, 2020 - Leading global investment management firm Conning said that data from the medical professional liability (MPL) insurance industry suggest that business and financial pressures are mounting on carriers, meaning that more trying times may be ahead.
In his “Market Update” video report, prepared for the Professional Liability Underwriting Society 2020 Healthcare & MedPL Symposium and recorded in lieu of the event’s cancellation due to the pandemic, Conning’s Bill Burns examined the market trends MPL carriers are now facing.
“Combined and accident-year-loss ratios have been rising in recent years, while profitability is falling and favorable reserve development is dwindling,” Burns said. “Premiums appear to be on the rise due to rate increases, but buyers are consolidating, and ‘social inflation’ is driving larger jury malpractice awards.”
Burns added that his analysis was conducted prior to the onset of the COVID-19 pandemic and that the impact from the disease’s outbreak is as yet unknown. He outlined a variety of next steps for MPL insurers to consider as they prepare for the future, but noted that their decisions will depend in a large part on their business structure, capital and appetite for risk.
Conning (www.conning.com) is a leading investment management firm 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.
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