Medical Professional Liability Insurance Market Report 2024

This Medical Professional Liability Insurance market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The medical professional liability insurance market size has grown rapidly in recent years. It will grow from $13.25 billion in 2023 to $14.64 billion in 2024 at a compound annual growth rate (CAGR) of 10.5%. The growth during the historic period can be attributed to several factors, including the increase in accidents, growing awareness, rising medical costs, a higher number of claims, and the expansion of telemedicine.

The medical professional liability insurance market size is expected to see rapid growth in the next few years. It will grow to $22.02 billion in 2028 at a compound annual growth rate (CAGR) of 10.7%. The growth during the forecast period can be attributed to several factors such as the need to reduce fraudulent claim settlements, the growing demand to enhance claim management services, an increase in medical malpractice claims, rising healthcare costs, and heightened patient expectations. Key trends in this period include technological advancements, the integration of artificial intelligence (AI) and machine learning, the expansion of digital healthcare records, a focus on risk management solutions, and the use of data analytics.

The growing incidence of medical accidents is anticipated to drive the expansion of the medical professional liability insurance market. Medical accidents, also known as medical errors or adverse events, refer to unintended injuries or complications resulting from medical care or treatment. These accidents can arise from various factors such as human error, system failures, or unforeseen complications. Medical professional liability insurance covers these unintended mistakes or accidents, ensuring support for both the provider and the patient in case of an incident. For example, according to the Association of Health Care Journalists (AHCJ), medical errors cause 251,000 fatalities annually in the USA, accounting for 9.5% of all deaths in the country each year. This increasing incidence of medical accidents is fueling the growth of the medical professional liability insurance market.

Major players in the medical professional liability insurance market are focusing on innovative solutions, including AI-based platforms that integrate digital tools for efficient policy management, real-time risk assessment, enhanced claims processing, and improved customer service. For instance, in October 2023, Indigo, a US-based company specializing in natural language processing and machine learning, introduced an AI-driven medical professional liability insurance platform. This platform aims to improve insurance process efficiency for brokers by offering real-time quoting and binding capabilities, which enhances brokers' success rates in securing client policies.

In January 2023, MagMutual Insurance Company, a US-based provider of medical professional liability insurance, acquired MDAdvantage Insurance. This acquisition, for an undisclosed amount, is a strategic move to strengthen MagMutual's position in the market by enhancing its policy offerings and risk management services for insured physicians. MDAdvantage Insurance is a US-based private insurance company specializing in medical professional liability insurance.

Major companies operating in the medical professional liability insurance market are AXA SA, Allianz SE, Munich Reinsurance Company, American International Group Inc. (AIG), Chubb Limited, Aviva PLC, The Hartford Financial Services Group Inc., MCIC Vermont LLC, Zurich Insurance Group Ltd., Hiscox Ltd., Towergate Insurance Brokers, Berkshire Hathaway Inc., ProAssurance Corporation, Medical Professional Mutual Insurance Company (ProMutual), Beazley PLC, CoverWallet Inc., MagMutual LLC, Assicurazioni Generali S.p.A., Kerry London Limited, The Doctors Company, Blackfriars Insurance Brokers Ltd.

Asia-Pacific was the largest region in the medical professional liability insurance market in 2023. The regions covered in the medical professional liability insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the medical professional liability insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Medical professional liability insurance, commonly referred to as malpractice insurance, is designed to protect healthcare professionals from claims of negligence, errors, or omissions that occur while providing medical services. This insurance ensures that healthcare providers can continue their practice without the financial burden of legal claims related to their professional activities.

There are two main types of medical professional liability insurance are occurrence-based policies and claims-made policies. Occurrence-based policies cover claims arising from incidents that occur during the policy period, regardless of when the claim is reported. Various claim types include medication errors, surgical errors, misdiagnosis or delayed diagnosis, and childbirth injuries, with coverage levels ranging from up to $1 million, $1 million to $5 million, $5 million to $20 million, and above $20 million. These policies are distributed through different channels, such as agents and brokers, direct response, banks, and others, and are used for various purposes, including individual and commercial applications.

The medical professional liability insurance market research report is one of a series of new reports that provides medical professional liability insurance market statistics, including medical professional liability insurance industry global market size, regional shares, competitors with a medical professional liability insurance market share, detailed medical professional liability insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the medical professional liability insurance industry. This medical professional liability insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The medical professional liability insurance market includes revenues earned by entities by providing general liability insurance, employee benefits liability and managed care liability. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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