Although the medical professional liability (MPL) industry is still reporting positive income results, a key measure of profitability has started to show signs of deteriorating, indicating that insurers have likely passed an inflection point in the market cycle.

Perhaps even more of a concern is that MPL insurers’ current profitability largely stems from policies written during the early- to mid-2000s, when premiums more than adequately covered losses.

This article, published in Physician Insurer, reviews various negative factors that may disturb the MPL market and send prices higher.

Reprinted from the Third Quarter 2011 issue of Physician Insurer Magazine, Physician Insurers Association of America. Copyright, 2011.