Medical Professional Liability in a Changing Health Care Environment: The New Story Unfolds
Conning Research: Medical Professional Liability Insurance Challenged by Health Care Changes
(Hartford, CT) November 29, 2010—The medical professional liability insurance industry faces new challenges from both health reform and increased competition, which will slow growth and profitability for the sector, according to a new study by Conning Research & Consulting.
“The medical professional liability insurance industry is headed for lower profits and slower top-line growth. This has been a highly cyclical line of business, and cyclical conditions are continuing,” said Jeffrey Thompson, analyst at Conning Research. “Two forces may drive this line of insurance back into unprofitable waters—competition and an increase in loss costs. Competition has begun already, with price-cutting, acquisitions, new entrants, and continued growth of self-insured vehicles. Loss cost growth has been slower to develop, but we believe a number of conditions are aligning for this to take off.”
The Conning Research study, “Medical Professional Liability in a Changing Health Care Environment: The New Story Unfolds,” analyzes the impact of national health reform on an already stressed medical operating environment. The study also looks at opportunities from these changes, including recommendations for new risk management practices and services, changes in the pricing model, product development, and prospects for new markets to emerge.
“The delivery of health care is changing and this will change the way medical professional liability insurers view and manage risk, defend claims, manage data, price policies, choose markets, and expand,” said Stephan Christiansen, director of research at Conning. “While we see a deteriorating environment for medical professional liability, tools do exist for better-informed companies to drive future performance apart from industry results. No insurer is immune from market forces, yet the degree to which they can insulate themselves is likely greater than they believe.”
“Medical Professional Liability in a Changing Health Care Environment: The New Story Unfolds” is available for purchase from Conning Research by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.
About Conning Research & Consulting
Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning Research has published independent insurance industry research for 50 years, including market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.