Some large insurers have left the medical malpractice insurance market, although new players are largely replacing their capacity, experts say.
Medical insurance experts say new entrants include Bowhead Specialty Underwriters Inc., CapSpecialty Inc., Munich Reinsurance Co., Underwriters Inc. and Vantage Group Holdings Ltd.
They say those who left recently are CNA Financial Corp., Hallmark Financial Services Inc., QBE Insurance Group Ltd. and Zurich Insurance Group.
Bruce Dmytro, CNA senior vice president, healthcare, said in a statement that the insurer “will take a hiatus from offering professional liability insurance due to the high frequency of claims. severity encountered by this sector of the industry “. He said CNA will continue to offer frontier solutions and alternative risk solutions to hospitals and healthcare systems.
Paula Sullivan, Senior Vice President of Chicago-based Marsh LLC, said, “What’s most important when looking at new markets is that we have very experienced underwriters, some from existing markets. , which understand the sector. Plus, they’re coming to market with a clean slate, she said.
Dennis Cook, president of IronHealth, a subsidiary of Liberty Mutual Insurance Co., said, “Overall it’s a washout,” with new markets replacing the capacity of outgoing insurers.
John Livatino, Chicago-based focus group leader for various US medical and life sciences at Beazley PLC, said the new entrants would replace the capacity “to some extent” but “I don’t know how. ‘they jump into that depth. Most of the new entries appear to be competing in smaller to medium risks, ”rather than larger complex risks, he said.