Medical liability insurers continued to face a sluggish market, with direct premium collections down for the second straight year in 2014, according to a Modern Healthcare review of data supplied by A.M. Best Co.
Total premium revenue dropped 1.3% from 2013 to 2014, after taking a 2.5% dip from 2012 to 2013. The last time the industry saw growth in direct premium revenue was in 2006, when it grew by 3%.
A favorable climate for risks and claims has resulted in a slight reduction in the frequency of medical malpractice claims for a number of years, said Brian Atchinson, CEO of the Physician Insurers Association of America.
Just seven of the top 25 liability insurers collected more premium revenue in 2014 than in the previous year. Atchinson said the varying results for premiums collected are related to carriers' different structures. For example, Berkshire Hathaway, the company that wrote the largest amount of direct premiums in 2014, includes a number of organizations that serve different sectors of the marketplace, he said.