Best’s News & Research Service - July 20, 2023 10:33 AM (EDT)
Update: Several Medical Professional Liability Underwriters See Loss Ratios Above 100
OLDWICK, N.J. //BestWire// - (Updates with headline clarification.) The adjusted loss ratio for U.S. medical professional liability underwriters averaged 54.4% based on occurrence for policies covering any event that occurred while the policy was in effect regardless of when it was reported, with a number of writers seeing loss ratios above 100%.
Among the top 25 writers ranked by 2022 direct premiums written, two had adjusted loss ratios above 100%: seventh-ranked ProAssurance Group at 118.1% and No. 20 Church Mutual Insurance Group at 100.3%.
ProAssurance widened its first-quarter net loss to $6.2 million from a $3.6 million net loss a year earlier. This year, juries have awarded plaintiffs two $15 million verdicts and two more in the $40 million to $45 million range, said President and Chief Executive Officer Ned Rand in May. MPL insurers face claims severity near or at all-time highs from jury awards on litigated claims, Rand said (BestWire, May 11, 2023).
Eleven MPLI writers showed loss ratios above 100% in the ranking.
Berkshire Hathaway Insurance was the top MPLI underwriter based on occurrence, with $834.5 million of DPW and a market share of 31.6%, followed by Doctors Company Insurance Group with DPW of $340.3 million and a 12.9% market share, and CNA Insurance Cos. with DPW of $261.3 million and a market share of 9.9%.
The total U.S. P/C industry accounted for $2.64 billion with an adjusted loss ratio of 54.4%.
The report measures 2022 DPW, market share, adjusted loss ratios and percentage of company premiums.
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(By David Pilla, news editor, BestWire: David.Pilla@ambest.com)