WGA InsureBlog

Medical liability insurance premiums have eased nationwide for the fourth consecutive year, according to the annual Medical Liability Monitor survey. 58% of premiums had no change, up from 50% in 2008, another 36% of premiums fell, down from 43% last year. This is a continuation of the positive trend that we have seen over the past few years. There is still enough capacity in the market to foster price competition. For the coming year, we do not see this changing dramatically. While these trends are encouraging for medical providers, we would be remiss if we did not sound a note of caution. The number of buyers seeing a decrease is shrinking. I believe that underwriters are beginning to look at a number of factors, including financials, losses and management’s commitment to risk control, more carefully. Health care providers should begin to plan for the bottom of the market and for a time when these price decreases come to an end. In essence, there is still no substitute for solid risk management fundamentals.