|+5% to +15%
|+5% to +15%
|+5% to +25%
|Hospital professional liability
|+7.5% to +20%
The medical malpractice market continues to deteriorate in the loss environment, driven by systemic risks, such as rolling back of tort reforms in key states (California, New York, Pennsylvania) and increasing severity of claims. Furthermore, antitrust and class action claims continue to be problematic while social inflation and economic inflation add an additional wrinkle to the market dynamic. Overall rate increases appear to be stabilizing, and rate decreases are not expected any time soon. Carriers are indicating they will need consistent rates given the current market trends, especially for health systems, loss-affected accounts, and clients with exposure in challenged venues. Many times, excess layer increases can outpace lead layer increases due to the larger impact of trend and severity.
The market continues to experience:
The number and size of acquisitions have declined so far in 2022, largely due to the pandemic; however, combinations continue to be a common practice in healthcare. While the impact of M&A is debatable, some key points that can impact market response:
Excess verdicts will continue to cause turbulence in the marketplace by driving further deterioration in the loss environment. According to the Verdict and Summary Survey results, published by Clark Hill PLC in August 2022, year-to-date 2022 has already seen 19 verdicts larger than five million with three verdicts above $50 million.
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