The soft market for medical professional liability insurance continued in 2009, with resulting upticks in combined loss ratios for insurers. There continues to be evidence of good performance from recent accident years. These results have generated a competitive medical professional liability insurance market in general, although some insurers have indicated unwillingness to lower premiums and may see their premium volume shrink in 2010.

Looking Ahead

The medical professional liability insurance marketplace is generally expected to remain stable to soft in 2010. Any major changes or events such as a significant uptick in combined loss ratios, a catastrophic event affecting the industry in general, or a major pullback in capacity, however, could well affect the situation. Due to an increase in catastrophic claims and a potential hardening market for HMO reinsurance/provider excess loss, clients are reviewing their reinsurance coverage closely to ensure that they are covering this evolving risk.