2011 was once again a year of financial growth for the medical professional liability (MPL) insurance industry. The industry’s combined ratio and operating ratio increased slightly from 2010, though both ratios remained near the low levels seen since 2006. Insurers were able to release reserves once again, and they returned a substantial portion of these releases as policyholder dividends. The MPL industry once again set a record for the amount of dividends returned to policyholders during 2011 despite the slight decline in financial results. Surplus also grew moderately in 2011, providing the MPL industry with additional capital support.
Reprinted from the Second Quarter 2012 issue of Physician Insurer Magazine, Physician Insurers Association of America. Copyright, 2012.