US medical professional performance improved significantly last year, reversing a four-year trend of declining performance, but still generating a total cost of 108%, says Fitch Ratings Inc. in a report published on Monday.
The credit rating agency predicts that the segment’s performance will improve further this year due to earned premium growth related to the recent significant premium increases.
It says the market segment is benefiting from the hardening phase of the commercial insurance market, with a 2021 net income premium approaching $ 10 billion after an annual increase of 10.4%. This can be compared with the 2018-2020 period’s 4% three-year average.
However, the report says that a return to insurance profitability is less likely, given the challenges of market competitiveness and uncertainty about loss experience from economic volatility, higher inflation and any post-pandemic revival of litigation.
The report says that all pandemic-related breaks in claims settlement patterns and legal activities are now diminishing as the courts reopen and healthcare use returns to previous standards.