|Flat to 15%
|+5% to +15%
|Flat to 10%
|Hospital professional liability
|+5% to +20%
The medical malpractice market continues to experience challenges 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. We are beginning to see batch claims creating additional pressure in the market. Overall rate increases appear to be stabilizing; however, rate decreases are not expected in the short term. Carriers are indicating they will need consistent rate and retention increases given the current market trends, especially for health systems, loss-affected accounts, and clients with exposure in challenged venues. Frequently, excess layer increases can outpace lead layer increases due to the larger impact of trend and severity on higher layers. The market continues to experiece:
The number and size of acquisitions declined 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:
Increasing frequency of substantial and oversized verdicts will continue to cause turbulence in the marketplace by driving further deterioration in the loss. environment.
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