High Pressure

Kaufman, Miriam; Nussbaum, David
April 2011
Best's Review;Apr2011, Vol. 111 Issue 12, p77
Trade Publication
The article reports that managing general underwriters (MGUs) in the U.S. who used to handle the medical stop-loss reinsurance have lost market share to large direct writers. As stated, due to the increased pressure from large, direct insurance companies, MGUs are being pressured to lower rates. It states that as directwriters have lower expenses and provide better preferred provider organization access, MGUs which once controlled 75 percent of the market have been overtaken by them.


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