Insurance Marketplace Realities 2025 – Life sciences

Rate predictions: Life sciences

	Trend	Range
Products & professional liability		+3% to +5%

Coverage and litigation trends

• PFAS litigation remains a significant concern for liability insurers, with exclusions still being introduced across programs. Whenever possible, such exclusions should be limited to the hazardous, contaminating or toxic properties of PFAS and/or related cleanup.
• Social inflation continues to fuel larger verdicts and claim severity, which is expected to continue with no signs of abatement in the foreseeable future.

Clinical trials trends

• Third-party clinical trial sites increasingly looking to transfer the cost of participants’ medical treatments from health insurance companies to the sponsor, resulting in sponsors seeking to collect under the clinical trial medical expenses sublimit in the product liability policy. Insurers are pushing back, as this sublimit is intended to be reserved for sudden and accidental expenses in connection with a study protocol. Clinical trial agreements must be carefully reviewed to ensure the sponsor understands how their clinical trial coverage will or will not respond to agreed-upon requirements for medical expense reimbursement.
• There is continued focus on increasing diversity in clinical trial participation to promote fairness in standards of care and minimize outcome disparities between populations.
• Ethics committees in foreign jurisdictions continue to require broader insurance coverage and documentation, making it essential for life sciences companies to partner with an insurance carrier and risk management professional who are well-versed in addressing these requirements.

Industry trends

• Artificial intelligence and machine learning continue to fuel revolutionary advancements in the life sciences industry, with the breadth of FDA applications continually and rapidly increasing over the past few years. The FDA continues to update their regulatory oversight and framework to ensure that these new technologies are safely and effectively improving patients’ quality of care. At the same time, the insurance industry is closely monitoring the incorporation of AI/ML into medical products and healthcare applications as the rapid developments bring new challenges to the liability landscape.
• There are many positive developments on the horizon for the life sciences industry, including continued vaccine innovation, new cell and gene therapies to treat cancer, rare diseases, and life-threatening conditions, innovation inclusive of AI/ML technology and an overall commitment to diversity, equity and inclusion in treatment access.

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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Denise Gordon

Life Sciences Broking Leader, North America

email Email phone +1 651 334 4246

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John Connolly

North American Industry Leader - Life Sciences

email Email phone +1 610 254 5686

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