The past week brought no seismic shifts in medical malpractice insurance, but several developments are worth your attention. From legislative changes in Florida to a high-profile fertility case in California, the pressure on both carriers and insureds continues to build.
Carrier Market: Tight but Stable
No major mergers or withdrawals shook the market this week. The heavyweights—Berkshire Hathaway, ProAssurance, and The Doctors Company—remain steady, but signs of caution persist.
After a bruising 2024, most carriers are holding firm on higher premiums and stricter underwriting. AMA data shows nearly half of reported premium rates rose year-over-year from 2023 to 2024. That trend isn’t fading.
For Homewood, it translates into longer negotiations, tougher questions, and more creativity in securing coverage for higher-risk specialties like obstetrics and surgery. The market may be steady, but it’s still tightening at the edges.
Florida Wrongful Death Bill Gains Momentum
On March 27, Florida’s House passed HB 6017 by an overwhelming 103–6 vote, signaling strong support for expanding wrongful death claims in medical malpractice suits. The Senate’s companion bill, SB 734, also cleared committee review with minimal opposition.
Once signed by the governor, the law will allow adult children over 25 to sue for the loss of a parent in malpractice cases—overturning a long-standing restriction. For our brokers, this is an early warning: claim frequency and severity could rise sharply in Florida.
Clients will lean harder on existing coverage, and carriers may reevaluate rates and retentions across the region. Renewal conversations should already factor in these potential changes.
Source: Florida Senate
Spotlight Case: Ovation Fertility Under Fire
In California, Ovation Fertility’s Newport Beach lab is facing a growing pile of lawsuits after a lab technician allegedly used hydrogen peroxide instead of sterile solution, destroying embryos in storage.
Dozens of former patients have now filed claims, with damages projected in the millions. The fallout highlights a key issue for brokers: entity-level exposures. Clinics, labs, and group practices face risks far beyond individual physician liability.
Policies must be scrutinized for tail coverage, incident triggers, and scope of protection. The Ovation case could set a new benchmark for lab-related malpractice claims. Source: Intelligence Line
Nuclear Verdicts Still Looming Large
No new “nuclear verdicts” landed this week, but the specter remains. The $97 million Iowa OB-GYN judgment from 2023 resurfaced, as the clinic now accuses its insurer, MMIC, of mishandling settlement talks.
While the appeal drags on, it’s a stark reminder: without sufficient excess layers or umbrella coverage, even a single catastrophic award can sink a practice. The most litigation-prone states—California, Florida, and New York—remain the highest-risk zones.
