The MPL Association has completed its first annual study of loss reserve adequacy for the medical professional liability industry.
Loss reserves represent the largest liability on the MPL industry’s balance sheet. For most of the last two decades, favorable loss reserve development has played a key role in the financial performance of the MPL industry,” said MPL Association Vice President of Research and Analytics Bill Burns, lead author of the study. “In order to determine whether loss reserves are still redundant—and by how much—the MPL Association undertook this independent analysis. Going forward we intend to perform a similar analysis every year.”
The MPL Association study, “MPL Association’s First View: Loss Reserves in MPL Insurance,” reviews the MPL industry’s loss reserve position at the end of 2023, by policy type (occurrence and claims-made), by accident/report year, and in total. In the study, the Association includes estimated ranges of reserve adequacy levels in total, by policy type, and by accident/report year.
The report is available at no cost to MPL Association members and Executive, Strategic, and Mission Partners and available for purchase for MPL Association Affiliate Partners (at a discounted price) and nonmembers.