The year 2012 was once again a year of financial growth for the medical professional liability (MPL) insurance industry, despite declining profitability. While the industry’s operating ratio remains well below 100%, it has increased noticeably relative to 2011, driven by a decline in reserve releases. Despite this decline in profitability, the MPL industry again returned a substantial portion of its income as dividends to policyholders. Surplus also grew moderately in 2012, providing the MPL industry with additional capital support.
Reprinted from the Second Quarter 2013 issue of Physician Insurer Magazine, Physician Insurers Association of America. Copyright, 2013.