Over the past seven years, reserve releases from previous years’
policy writings have been a mainstay of the medical professional
liability (MPL) market, contributing to insurer’s profits
in the early years and, more recently, buoying results. But
they’ve also been the engine of competition, undercutting price levels
at a time when insurers have seen their client base shrink. The apparent
convergence of these two forces—a runoff of reserves and consolidation
within the healthcare industry—raises the question: Could
their intersection cause the market to harden, quite suddenly?
This article was originally published in Inside Medical Liability, Third Quarter 2013.