HomeLast Word → State of the FL Med Mal Market - Hard Market Now Unfolding

State of the FL Med Mal Market - Hard Market Now Unfolding Print E-mail
Written by Matt Gracey   
Friday, 31 May 2019 10:43

Just as the heat of summer begins and ushers in hurricane season here in Florida, unfortunately other dark clouds are forming in the market for doctors' medical malpractice insurance. For the last twelve years malpractice premiums have steadily decreased until the last few years of flat prices. As the frequency and severity of claims against doctors has begun to rise in the last few years, few insurers raised their prices because of competitive fears. Most insurers started taking money out of their claims reserves and offset the growing expenses of legal fees and claims expenses so as not to need to increase their rates. Some decreased dividends and other "behind the curtains" discretionary credits so as not to have to publicly announce rate increases. All of this circumvention of straight up premium increases seems to now be behind us. In just the last month a number of companies have either announced or been approved for more significant rate increases. With most insurers of doctors in Florida now losing money on every policy they write, the only questions now are how much will rates increase and how quickly. My prediction is that many specialties will, over the next three years, experience pricing increases of up to twenty-five percent, with some even higher. In Georgia, one insurer just announced last week that rates will immediately increase up to forty-five percent on one specialty and thirty-six percent on another. We in Florida are no longer immune from such market changes, unfortunately.

Last Updated on Friday, 31 May 2019 11:02

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