Medical Malpractice Poised for Long-term Stability
Source: Conning Research & Consulting
Medical malpractice insurance has been stable since its last market disruption in the early 2000s, and is now poised for continued profitable growth, according to a new study by Conning Research & Consulting, Inc.
“The medical malpractice industry has changed structurally since the market crisis of the early 2000s, and is poised for long-term profitable growth,” said Mark Jablonowski, analyst at Conning Research & Consulting. “Yet the industry has been here before, with brief episodes of profitability that disintegrate into severe unprofitability. Achieving long-term growth will depend on insurers’ ability to maintain a commitment to adequate pricing and careful underwriting of this highly specialized line.”
The Conning Research study, “Medical Malpractice: Getting Ahead of the Curve” reviews the industry’s financial results, structural shifts, management issues, and projections.
“Medical malpractice insurance is now an industry dominated by specialist companies, often in the form of physician-owned mutuals,” said Stephan Christiansen, director of research at Conning. “This emphasis on specialization allows insurers to control losses better, identify loss trends, and moderate market swings. Yet this specialization also increases state concentration and the potential for more dramatic competitive interactions-both positive and negative.”