Fitch: U.S. Medical Pro Liability Insurance Profitability Declines

CHICAGO--(BUSINESS WIRE)-- The U.S. Medical Professional Liability Insurance (MPLI) market is adapting to several changes including declining premiums, increased competition, changing market dynamics, and diminishing reserve strength, which is pressuring profitability, according to a new dashboard from Fitch Ratings.

"Demand for MPLI has dwindled as the healthcare landscape shifts and more healthcare providers move to large medical groups and hospitals rather than small, independent practices," said James Auden, Managing Director, Fitch Ratings.

The MPLI market combined ratio increased to 98% with year-end 2015 continuing a several year trend of deterioration.

"The 10 year consecutive underwriting profitably streak could break with full year 2016 results as premiums and favorable reserve development decline," Auden added.

The MPLI market remains widely dispersed with a considerable portion of industry premiums held by monoline specialists with a narrow geographic focus. Further deterioration in MPLI profitability or capital erosion with MPLI specialists could spur acquisition activity among MPLI writers.

The U.S. MPLI Dashboard looks at year-end 2015 results for the industry and includes comments on underwriting, reserves, and the MPLI market place. The 'U.S. MPLI Dashboard' is available on Fitch's website at 'www.fitchratings.com' or by clicking on the link.

Additional information is available at 'www.fitchratings.com'.

U.S. MPLI Dashboardhttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=881027

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View source version on businesswire.com: http://www.businesswire.com/news/home/20160505006125/en/

Fitch Ratings
James B. Auden, CFA, +1-312-368-3146
Managing Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Gerald Glombicki, CPA, +1-312-606-2354
Director
or
Media Relations:
Hannah James, +1-646-582-4947
New York
[email protected]

Source: Fitch Ratings

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