Increasing Incidence of Medical Negligence to Boost the Global Medical Malpractice Insurance Market
Medical negligence is one of the leading causes of death globally, and it can occur during diagnosis, treatment, and post-treatment care. Deaths resulting from medical negligence can expose healthcare professionals and medical establishments to costly litigation. In such a situation, medical malpractice insurance can protect individual healthcare practitioners and medical establishments against suits filed by patients for medical negligence or intentionally harmful treatment decisions.
Medical malpractice insurance is a type of professional indemnity insurance, and it helps manage the risks associated with the healthcare industry. Premiums charged for this type of insurance are based mainly on the geographic location and the physician’s specialty. The premiums to be paid also depend on factors such as the amount of coverage needed, claims severity, claims frequency, and laws of the area.
The incidence of medical malpractice has been growing across the world and so, is the demand for medical negligence insurance. It has been found that around 80,000 to 100,000 deaths occur in the U.S. every year due to errors in diagnosis. The increasing occurrence of medical malpractice and medical negligence is fueling the growth of the global medical malpractice insurance market. The global Medical Malpractice Insurance Market is expected to grow at a moderate CAGR of 3.2% from 2019 to 2026 and reach USD 22.7 billion by 2026.
The global medical malpractice insurance market will be positively influenced by factors such as the increasing occurrence of chronic diseases, the rising number of surgeries being performed across the globe, and the increasing number of surgeries for accidental injuries. Further, the number of hip replacements surgeries has been increasing, which too will boost the growth of the global medical malpractice insurance market in the coming days.
However, the global covid-19 pandemic has affected all sectors of the economy, and the insurance sector is no exception to this. Though insurers usually factor such risks into their models, the Covid-19 or coronavirus pandemic is an unprecedented situation. The pandemic and the resulting lockdowns are putting considerable pressure on the healthcare systems of even the richest nations.
Like other businesses, the insurance business to has to take into account solvency and commercial viability amid the uncertainties created by the pandemic. This is going to affect the insurance industry and the market for almost all types of insurance including medical malpractice insurance.
The global market for medical malpractice insurance is expected to be dominated by North America. The region dominated the market in 2018, and this trend is likely to continue in the coming years as well. The growth of the North American market can be mainly attributed to the existence of well-developed healthcare infrastructure, high healthcare expenditure, rising prevalence of chronic diseases, and increasing investments in healthcare in the region.
The North American market will be followed by the European and Asia-Pacific markets. The growth of the Asia-Pacific medical malpractice insurance market will be led by emerging economies like China, India, and others.
The major players operating in the global medical malpractice insurance market are Allianz, Chubb, Hiscox, Inc., XL Group, AXA S.A, Tokio Marine Holdings, Travelers Insurance, The Doctors Company, Assicurazioni Generali, and Marsh & McLennan, among others.