...Premium Volume Declines Continue: Medical professional liability insurance (MPLI) net written premium volume for the U.S. property/casualty (P/C) industry fell for the eighth consecutive year with a 2.5% decline in 2014. Market Fundamentals Unlikely to Improve: The evolution of the broader healthcare market and ample underwriting capacity in the MPLI market point toward further weakening of MPLI market fundamentals and a gradual decline in premium rates. Calendar-Year Underwriting Profits: The MPLI market continues to generate significant profits on a calendar-year basis. The industry combined ratio was 94% in 2014, which represents a slight deterioration in performance over the past five years. Accident-Year Results Deteriorate: MPLI loss ratios on an accident-year basis have climbed recently due more to price deterioration than adverse claims trends. The industry accident-year loss ratio for MPLI ¡ claims made business in 2014 of 76.7% is 19 percentage points higher than the latest estimate...
