What are some key concepts in MPL insurance? Board members for medical professional liability insurers often come to the role with a clinical rather than financial background. But understanding company financial statements is essential for making informed decisions. This primer article provides a practical introduction to insurance accounting, actuarial concepts, and statutory financial reporting. Using a sample claim and hypothetical insurer, it explains how premiums, losses, reserves, investments, and surplus all affect an MPL insurer's bottom line.
The article covers the following:
- Sample claim fundamentals
- Premium and claim timing
- Actuarial loss estimates
- Frequency, severity, and trends
- Statutory financial statements
- Profitability and investments
The paper also includes a glossary of common terms, including written premium, IBNR, and more.