A.M. BestTV: Risks Are Changing for Legal Professional Liability Insurers, Say A.M. Best Analysts
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 7, 2018--In this A.M. BestTV episode, Janet Hernandez, senior financial analyst and David Blades, senior industry analyst, both of A.M. Best, examine a recent special report focused on smaller and midsize insurers that have developed a market in serving smaller law firms and solo practitioners. Click on http://www.ambest.com/v.asp?v=legalliability718 to view the entire program.
Insurers covering small law firms and solo legal practitioners have enjoyed a favorable run over the last several years, quite different from the period between 2008 and 2011, when there was an uptick in litigation against law firms.
“2010 was a turning point and pivotal year,” said Hernandez. “The financial and credit crises and the burst of the housing bubble, all caused an uptick in legal malpractice lawsuits. This, in turn, caused an uptick in the combined ratio prior to 2010. 2010 is the start of normalization of these claims in terms of frequency.”
Blades highlighted what is causing a drag on current profitability among market participants.
“In the last few years, claims frequency of legal professional liability insurers has basically stabilized; however, claims severity has increased,” said Blades. “This is basically tied into claims defense costs. We have seen claims remaining open for a longer period because plaintiffs are resisting offers of settlements. This resistance is definitely pressuring insurers,” he said.
To access a copy of this market segment report, titled, “Legal Professional Liability Insurers Address Changing Claim Trends, Emerging Risks,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=276016.
Recent episodes of A.M. BestTV include:U.S. Health Insurers Grow Via Government-Sponsored Programs, Say A.M. Best Analysts: Doniella Pliss, associate director, and Jeffrey Lane, senior financial analyst, A.M. Best, report that U.S. health insurers are experiencing mixed results with Medicaid and other government-related lines of business: http://www.ambest.com/v.asp?v=govhealthprograms918. U.S. Health Insurers Become More Aggressive Investors, Say A.M. Best Analysts: Jennifer Asamoah, financial analyst, and Jason Hopper, associate director, industry research and analytics, both of A.M. Best, said health insurers’ investments have included more non-traditional assets and higher-risk bonds: http://www.ambest.com/v.asp?v=healthinvestments818. Hawaii Dodged Hurricane, but Still Exposed to Flooding, Say A.M. Best Analysts: Steven DeLosa, associate analyst, and Bobby Skrabal, financial analyst, both of A.M. Best, said the insurance impact following Hurricane Lane mostly will be property and flooding claims in Hawaii, although relatively few Hawaii homeowners have flood insurance from the National Flood Insurance Program: http://www.ambest.com/v.asp?v=hawaii818. Volatility, Fees Cool Insurers’ Ardor for Hedge Funds, Says A.M. Best Associate Director: Jason Hopper, associate director, industry research and analytics, A.M. Best, said insurers have become more selective in their use of hedge funds: http://www.ambest.com/v.asp?v=hedgefunds918.
A.M. BestTV covers exclusive A.M. Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at. ViewA.M.BestTV episodes at.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visitfor more information.
Copyright © 2018 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180907005247/en/
CONTACT: A.M. Best
Lee McDonald, +1-908-439-2200, ext. 5561
Group Vice President, Publication and News Services
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE LEGAL
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 09/07/2018 09:26 AM/DISC: 09/07/2018 09:26 AM