MPL 2021 Premium Growth Not Sustained in 2022
(Rockville, MD, December 15, 2022)— The medical liability insurance industry showed double-digit premium growth in 2021, driven by firmer pricing and a return to pre-pandemic levels of healthcare utilization, according to a new report released today from the Medical Professional Liability (MPL) Association. The report examines direct premiums written for physicians and hospitals, as well as other healthcare professionals and other facilities.
Most companies recorded healthy premium increases in 2021 and the environment seemed primed for similar growth in 2022, the report,
“Where Are MPL Premiums Heading?”
found. However, MPL industry data as of June 30, 2022, shows that premium growth appears to have stalled.
“While the industry continues to show mid-single digit growth, most segments show much less growth than was recorded in 2021,” said MPL Association Vice President of Research & Analytics Bill Burns. “The slowdown in growth was particularly sharp for the segments of ‘other professionals’ and ‘other facilities’ where premium increases were more than 25 percentage points less than in the same period in 2021.” The MPL industry has not recorded an underwriting profit in almost a decade and continued pricing increases are likely needed to reverse this trend, Burns noted.
The report is the first product from the Association’s newly structured Research & Analytics Department, which will be issuing more MPL-specific industry analyses in 2023.
The report is available on the
MPL Association website.