The malpractice insurance market is tough on buyers and is expected to remain so in the near future.
One cause of particular concern is the rise in telemedicine since COVID-19, which some say has led to higher claims.
Paula Sullivan said the market is in a difficult situation, with rising premiums and deductibles, limited capacity and limited coverage.
Senior Vice President of Chicago-based Marsh LLC.
With $10 million jury verdicts no longer rare and combined ratios over 100%, health insurers no longer have the reserve headcount available as they have in years past. This “will continue to require real underwriting discipline,” Pete said. He is a North American healthcare practice based in Reilly, Springfield, Pennsylvania. He is a leader and Chief Sales Officer for Hub International Ltd.
“While the first half of the year has shown some signs of correction, underwriting results still show signs of pressure, with interest rates rising in the 5% to 15% range and many carriers The upper surplus segment is showing a bigger uptick, said Dan Joyal, vice president of EPIC Insurance Brokers & Consultants in Boston.
Infection rates have risen by up to 20%, according to Chris Zuccarini, managing director of the National Health Division of Risk Strategies Co. Inc. in Radnor, Pennsylvania, which focuses on physician groups. High-risk groups with little adverse billing activity can still find competitive rates, he said.
Sullivan said he expects rates to continue to rise, in the range of 5% to 15%, depending on the state.
Joyal said many insurers are slashing capacity, replacing $20 million in premiums with $15 million, for example, and replacing $10 million in premiums with $5 million. However, the company said it still has ample capacity.
Insurers are also encouraging policyholders to increase retention or deductibles, especially in the hospital segment, and this trend is expected to continue, he said.
Meanwhile, Joyal said the rapid rise in technology use over the past three years has “increased concern” about claims related to telemedicine.
Claims have “absolutely increased,” Riley said. Given telemedicine’s reliance on video screens and phones, this segment is at high risk for misdiagnosis, “not surprising to anyone,” he said.
Observers say the use of telemedicine technology has declined somewhat since the height of the pandemic, but is expected to remain an integral part of healthcare.
In addition to the risk of being misdiagnosed, there are inherent risks to its use, according to experts.
Physician’s assistants and other non-physicians are increasingly implementing telemedicine, Zuccarini said, and if they do more than they’re trained for or rely on them too much, “it can cause problems.” “apparently.
There is also concern that doctors aren’t building a personal relationship with their telemedicine patients, which could lead to more charges, he said.
