Although we seem to be moving toward a future where we are acclimated to the realities of the COVID-19 pandemic, we have yet to see the full ramifications of its aftermath. The healthcare landscape changed the past years, with physicians and their staff prioritizing immediate concerns, such as their patients’ recovery from a novel illness and their staff’s mental well-being. Even though these issues have been front and center and should continue to be a priority, it is also important to take a look at other concerning trends, some of which predate the pandemic.
These trends include rising costs for specialized lines of coverage nationally, including medical professional liability (MPL), excess liability, and cyber liability. Properties in catastrophic prone areas also continue to see steep rate increases. Social inflation, an uptick in cyberattacks, and extreme weather events are to blame. As a response to extreme and unpredictable losses, the market has hardened. This means that carriers are limiting their appetite for risk, increasing underwriting scrutiny, and increasing premium rates.
In a challenging market, physicians need to have resilient risk management strategies in place and partner with brokers who have carrier relationships and proven experience with the underwriting submission process.