Conning Reports Med-Mal Returns to Profitability in 2006

Despite the dismal performance of the medical malpractice line over the past few years, the line will again be profitable in 2006, according to a new study by Conning Research and Consulting Inc.

“The medical malpractice line has demonstrated periods of high
profitability as well as periods of crisis with severe losses,” said Stephan Christiansen, director of research at Conning Research & Consulting. “While we have certainly been in the loss and crisis segment of the cycle for the past few years, we see clear indications of progress towards profitability.”

The Conning Research study, “Medical Malpractice: New Opportunities Emerging? Or the Eye of the Hurricane?” identifies the industry segments, outlines the factors creating the current crisis as well as those which point to renewed profitability. Further, the study outlines the conditions that would be needed for sustained profitability in the line.

“We looked at the key insurance industry segments and their issues along with those of the healthcare community and the regulatory environment,” said Christiansen. “While there are certainly reasons for concern, especially long-term, overall the news is good. Frequency is declining; investment income is on the rise; and state reforms, particularly in AMA crisis states, are moving forward. Longer-term issues are more complex, and we have identified and presented the conditions necessary for sustained success in the line.”

“Medical Malpractice: New Opportunities Emerging? Or the Eye of the
Hurricane?” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s Web site at http://www.conningresearch.com.