The non-standard Medical Professional Liability (MPL) market is no longer a small corner of the insurance world—it’s a vital and growing segment. As the healthcare industry evolves, more professionals are finding themselves in need of specialized coverage that falls outside the standard market. For retail agents, this shift brings new challenges, but it also opens doors to expand expertise and client relationships.
The Growing Need for Non-Standard MPL
The healthcare industry is undergoing a transformation, and with it, the profile of non-standard clients is expanding. This growth is driven by several key factors:
- Innovative Practices and Risk Profiles: Telemedicine, robotics, aesthetic medicine, and other advancements are reshaping the way healthcare is delivered. These new models of care often fall outside traditional risk parameters, making it difficult for providers to qualify for standard MPL coverage.
- Administrative and Legal Challenges: Billing disputes, scope-of-practice issues, and investigations unrelated to malpractice can lead to policy cancellations or non-renewals, leaving healthcare providers in need of alternative coverage solutions.
- A Hardening MPL Market: Insurers are tightening their underwriting standards as they grapple with increasing claims severity and shrinking market capacity. High-dollar malpractice claims have surged in frequency, with those exceeding $10 million growing by 125% since 2015. Simultaneously, consolidation in the healthcare industry has reduced the number of insured entities, further straining insurer profitability and limiting options for coverage.
Together, these trends are pushing more healthcare providers into the non-standard MPL market, creating both challenges and opportunities for retail agents. To learn more about why the non-standard MPL market is expanding, read Three Reasons the Non-Standard MPL Market Is Growing.
Challenges Agents Face in the Non-Standard MPL Market
Finding coverage for non-standard clients isn’t always straightforward. Agents must navigate complex risk profiles and often lack direct access to the right markets. Moreover, understanding the surplus lines process can be daunting for agents who primarily work with standard policies.
To learn how to overcome these challenges and better serve your clients, check out Top Challenges of Placing Non-Standard MPL Coverage.
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