Best’s Market Segment Report: U.S. Medical Professional Liability Segment’s Profitability Buoyed by Net Investment Income
01 Mayo 2024 - 9:52AM
Business Wire
Premium growth for AM Best’s medical professional liability
(MPL) composite moderated to 3.6% in 2023, but overall financial
results were buoyed by favorable net investment income, according
to a new AM Best report. The premium growth was spurred by
price firming following a prolonged period of soft market
conditions and challenging industry dynamics that dampened
demand.
The new Best’s Market Segment Report on the U.S. MPL segment
noted that improved underwriting results stalled last year, driven
in part by rising loss adjustment and other underwriting expenses.
MPL insurers continue to face many of the same headwinds that they
have in recent prior years, including a potential rise in claims
costs due to social inflation and erosion of tort reforms, as well
as the growing complexity of medical care. MPL carriers also
continue to work to mitigate ongoing challenges such as escalating
burnout rates, staffing shortages, and further growth of
alternative care providers, all of which could have a negative
impact on claims frequency.
“These headwinds, coupled with changes in tort reform, social
inflation and continued rising claims severity could impede the
segment’s progress,” said Sharon Marks, director, AM Best. “But
these issues are also expected to help focus and maintain the MPL
segment’s attention on premium adequacy, underwriting discipline,
and prudent reserving.”
AM Best revised its outlook on the U.S. MPL insurance segment to
stable from negative in November 2023, citing improved rate
adequacy, the diminishing impact of pandemic-related exposures,
persistently redundant loss reserves, higher reinvestment rates,
and improved overall returns.
To access this market segment report, please visit
http://www3.ambest.com/bestweek/purchase.asp?record_code=342465.
A panel of AM Best analysts and leading market executives will
discuss the MPL segment in a complimentary market briefing
scheduled for Wednesday, May 1, 2024, at 11:00 a.m. (EDT). To
register, or for more information, please go to
http://web.ambest.com/about/events/webinars/MPLI-Briefing-2024/.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2024 by AM Best Rating Services,
Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Sharon Marks Director +1 908 882 2092
sharon.marks@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com David Blades Associate
Director, Industry Research and Analytics +1 908 882
1659 david.blades@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
al.slavin@ambest.com