Insurance Marketplace Realities 2025 Spring Update – Healthcare Professional Liability

Key takeaways

• Stress on healthcare systems is unprecedented. As the U.S. population ages, demand for medical services will grow much faster than the supply of practitioners, leading to an estimated physician shortage of between 54,100 to 139,000 physicians by 2033.^[1]
• Insurers remain concerned about aberrational verdicts; the average of the top 50 malpractice verdicts increased 50% in 2023 to $48 million from $32 million in 2022.^[2]
• In response, even well-established insurers are carefully monitoring and, in many cases, reducing capacity to as low as $5 million. They are also quoting terms with increased attachment points for underlying coverages, especially professional liability and auto.
• Sexual abuse allegations at teaching hospitals, in particular, and the ensuing batch events continue to be a key concern for underwriters.
• There are concerns about staffing, practitioner burnout and aging workforce. Plaintiff bars use understaffing to their advantage, citing “profits before people.”

Footnotes

1. June 2024 Report from the Association of American Medical Colleges (AAMC) Return to article undo
2. Fortune Magazine 7/2/24 Article – Medical Malpractice Payouts are ballooning and insurers are warning it will cost patients Return to article undo

To read more, download the full report below.

Disclaimer

WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Contacts

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Michael Faralli

Healthcare Broking Leader, North America

email Email phone +1 347 439 7058

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Joanne Kowalczyk

Senior Placement Specialist Healthcare Broking, North America

email Email phone +1 973 829 6395

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