A Close Look into the State of the Medical Professional Liability (MPL) Market

October 7, 2021

The Medical Professional Liability (MPL) insurance market has been grappling with several challenges over the last several years, including higher premium rates and coverage restrictions. The reason behind the challenges is growing claims severity as a result of social inflation, nuclear verdicts, industry consolidation and some insurers opting to exit specific segments or the entire healthcare market altogether. 

Depending on varying factors and the industry subclass, MPL rates have risen between 15%-25%, and are projected to continue to increase heading into 2022 with some classes faring better than others, particularly with new entrants coming into the market and bringing additional capacity. 

Impact of COVID on MPL Remains Unknown

Some carriers have made changes to their MPL policies, including raising retention levels and deductibles, tightening language when it comes to cyber exposures and adding a COVID-19 exclusion. When it comes to the impact of pandemic-related litigation on the MPL space, there is still a great deal that is unknown. 

During the height of the pandemic, the judicial system came to a standstill. Up to now very few MPL cases have been filed, but this could easily change as courts reopen and cases are back on the docket. In addition, due to the fluid situation of COVID-19 and shifting standards of medical care while the pandemic was in full force along with federal and state immunity laws, the legal landscape is quite clouded. 

Take nursing homes and assisted living facilities, for instance, which have been the target of several of the lawsuits filed. These facilities had the highest percentage of COVID cases while also operating with very little protective equipment and receiving conflicting guidance from local, state, and federal healthcare regulators. Add to this, a vulnerable population more susceptible to contracting COVID, and you can see how difficult it is to portend how these cases will be resolved down the road – and forecast the ultimate effect on an-already difficult MPL market. 

Partner with Experienced MPL Insurance Professionals

Because of the challenging MPL market, greater underwriting scrutiny takes place, making detailed submissions critical when renewing or securing new policies. Working with a specialty insurance underwriting and program management firm with experience and a long-term commitment in various segments of the healthcare industry is also key. You find this with Manchester Specialty Programs. We offer MPL coverage among other product lines to each of the business risks we insure – from Home Care to Allied Health Care and Human/Social Services organizations. We also provide risk management services to help prevent and mitigate losses, which ultimately improves the risk profile of an organization. 

For more information about how our products and services can help protect your insureds, please contact us at 855.972.9399.