Dan-Teclaw-AM-Best

In highlights from its First Monday series, A.M. Best’s Senior Financial Analyst Dan Teclaw discusses the profitable Medical Professional Liability (MPL) market. According to A.M. Best, 2014 was the ninth straight year of underwriting profit, significant rate increases and tougher underwriting.

Mr. Teclaw sees medical professional liability premiums coming down due to competition, and the market is slowing He notes a trend among physicians who are joining hospitals and large physician groups. Insurers who had previously targeted small physician groups are now targeting larger groups and offering a suite of products, including workers comp, in order to gain access.

Mr. Teclaw is optimistic about the MPL market. With claims frequency stable, “companies have kept their underwriting discipline… (while) generating favorable reserve development.”   These positive developments “translate into more capital and better flexibility for the companies going forward.”

The ACA hasn’t had much impact on MPL insurers, but Mr. Teclaw, notes that it has opened opportunities for insurers to broaden their products and improve premium in the future.

We’d like to thank A.M. Best for their contribution to our program. If you’d like to see more of the First Monday Series, visit the A.M. Best website.

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