29 Sep Medical Professional Insurer Market Prepped for Consolidation: Fitch
The medical professional liability insurance market continued its years-long decline in 2014 in terms of net written premium volume, hammered by forces including worsening accident-year results and a rapidly evolving healthcare market, Fitch Ratings found.
Despite its challenges, the MPLI market still managed to report a profit in 2014 and could be a target for consolidation, Fitch said.
Fitch said that net written premium volume dropped 2.5 percent in 2014, the eighth straight year that it has decline. Fitch also said that the changing healthcare market and “ample underwriting capacity” for medical professional liability insurance (MPLI) suggests the sector will continue to have weakening market fundamentals and more “gradual” declines in premium rates.