The MPL Association recently released the report, “Diversification in the MPL Industry.” Many companies in the medical professional liability sector of the property/casualty industry have capital in excess of the amounts needed to support their core business operations. Some companies are looking at diversification as a way to deploy capital, but lessons learned from the 1990s suggest diversification should not be entered into lightly.
According to Bill Burns, vice president of Research and Analytics at the MPL Association, and lead author of the report, “Although MPL is a mature market, there are opportunities for growth. There are also opportunities in other lines of business that companies might consider exploring. For those companies that decide to diversify, proper execution of their strategy will ultimately determine success.”
The report provides a history of diversification in the MPL industry, focusing on reasons how and why companies tried to diversify, and what did, or did not, work. The report also provides insights into paths for diversification in the current MPL market, as well as options for diversifying in other lines of business.