Insurance Marketplace Realities 2025 – Healthcare professional liability

Rate predictions: Healthcare Professional Liability

	Trend	Range
Overall healthcare professional liability		+5% to +15%
Allied Health		0% to +5%
Hospital professional		+5% to +5%
Managed care E&O		0% +10%
Physicians’ professional liability		+5% to +15%
Senior living		+5% to +15%

Key takeaways

• Stresses on healthcare systems are 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 continue to be a key concern for underwriters. Carriers have begun to include coinsurance and RDI provisions as mechanisms to limit or manage sexual abuse exposure.
• Concerns about staffing, practitioner burnout, 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

Disclaimer

Willis Towers Watson hopes you found the general information provided in this publication 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, Willis Towers Watson 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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