July 6, 2023 by matray

Below are some headlines and article synopses from the July 2023 issue of Medical Liability Monitor. To read the articles in entirety, please subscribe today.

MPL Insurance Market Recovery at Risk of Stalling, Positive Pricing Window Finite
The U.S. medical professional liability insurance (MPLI) market staged a significant recovery in 2022 with a 102.5% combined ratio, compared to an average of 109% during the previous four years. Positive pricing actions and a more favorable prior underwriting period reserve experience are key factors behind the recent improvement. While this shift is encouraging, a near-term return to consistent underwriting profits remains unlikely. The level of premium rate increases shows signs of moderating, creating questions about whether premium volume can keep pace with loss-cost patterns influenced by inherently volatile claims litigation and settlement activity, persistent higher inflation and a weaker economy …

EmPRO Posts Impressive Second-Year Results, Signals Regional Expansion
EmPRO Insurance Co. recently marked its second year writing business as the third-largest admitted medical professional liability insurer in New York State. A wholly owned subsidiary of Physicians’ Reciprocal Insurers (PRI), EmPRO was capitalized in 2020 by its parent, while assuming all of PRI’s active New York business. For the year ended Dec. 31, 2022, EmPRO recorded another year of improved financial performance, reporting admitted assets of $395.8 million, liabilities of $283.7 million, reserves of $176.9 million, surplus of $112.1 million, gross written premium of $178.4 million, net income of $12.1 million and a combined ratio of 82.7% …

Indemnity Payments Impact First-Quarter financial Results for MPL Specialty Insurers
Perhaps the most interesting storyline this quarter was the resurgence of indemnity payments during the fourth quarter of 2022 and the first quarter of 2023. MPL specialty writers experienced an 18-month slowdown in indemnity payments that started in the second quarter of 2020. This includes the four quarters with the fewest indemnity payments made in the last 10 years. Beginning in the fourth quarter of 2021, it appeared as though payments had stabilized, but the hole created between the second quarter of 2020 and the third quarter of 2021 had not been filled. Now, during the last two quarters, the composite has had its two largest quarters of indemnity payments on record …

New York Lawmakers Again Vote to Update Wrongful Death Statute
New York lawmakers have again overwhelmingly passed a bill to overhaul the state’s 176-year-old wrongful death statute. A similar bill was vetoed by Gov. Kathy Hochul on Jan. 30 due to her concerns it could result in “significant costs for many sectors of our economy, particularly hospitals that are still recovering from the pandemic and struggling to stay afloat“ …

Nevada More Than Doubles its Noneconomic Damage Cap
Following heated debate over a bill proposing to significantly raise Nevada’s $350,000 noneconomic damage cap for medical liability lawsuits, healthcare provider and trial lawyer interests presented lawmakers with a deal last month to establish a new cap of $750,000. The previous cap was created via ballot initiative in 2004. The legislation also increases the statute of limitations to initiate a medical malpractice lawsuit from one year to two years from when the plaintiff should have been able to recognize a complication or three years from the date the alleged malpractice incident occurred ...

Healthcare Risk Retention Groups Drive Record RRG Premium Growth
Risk retention groups (RRGs) reported record premium growth in 2022. Premium increased by 12.9% to $4.9 billion, an increase of more than $558 million over the $4.3 billion reported in 2021, according to reporting by the Risk Retention Reporter. This marks the largest premium increase in dollar terms for the RRG industry, surpassing the premium growth of $527 million in 2003. Among RRGs reporting the largest premium gains, the healthcare sector led representation with six RRGs reporting premium gains of $10 million or more …

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