Conning - Looming Threats to Medical Professional Liability Insurer Performance

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Sep 19, 2013, 09:45 ET

HARTFORD, Conn., Sept. 19, 2013 /PRNewswire/ -- Medical professional liability insurers have been performing well for the past several years, but the industry's profitability will likely deteriorate over the next three years, according to a new study by Conning.

"For the past several years, medical liability insurers have posted historically strong underwriting profits and combined ratios well below 100%," said Stephan Christiansen, managing director at Conning. "While they are still writing profitable business today, we now forecast deterioration in profitability over the next three years, due primarily to four emerging threats. Insurers face issues with declining investment returns, changes in regulatory and judicial environments, movement of doctors out of private practice, and market cycle changes."

The Conning study, "Medical Professional Liability: Looming Threats to Solid Performance" reviews the market and structural issues that pose a threat to medical professional liability insurer performance, and explores the strategies of specialists, multiline insurers and risk retention groups in the market.

"As we researched the market forces it became clear that the combined effect of these issues would begin to reverse much of the positive changes seen in medical professional liability in past years," said Steve Webersen, director of research at Conning. "Some scenarios considered in our analysis could bring the sector past the point of deteriorating profitability and into another period of net losses in the next three to four years. Companies will need to rethink their strategies and operations to anticipate these changing conditions."

"Medical Professional Liability: Looming Threats to Solid Performance" is available for purchase from Conning by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.

About Conning

Conning (www.conning.com) is a leading investment management company for the global insurance industry, with almost $82 billion in assets under management as of June 31, 2013 through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, and Goodwin Capital Advisers. The company's unique combination of asset management, risk and capital management solutions and insurance research helps clients achieve their financial goals through customized business and investment strategies. Founded in 1912, Conning is focused on the future, providing clients with innovative solutions, leveraging its global capabilities, investment experience, and proprietary research. The company is headquartered in Hartford, Connecticut, with additional offices in Purchase, London, Cologne, and Hong Kong.