Brokers must now rethink risk strategies as the market hits a tipping point
As the July 1 renewal season approaches, US hospitals are bracing for what may be the most difficult and disruptive liability coverage cycle in years.
According to James McNitt (pictured), RPS healthcare practice leader, hospitals will face a significant capacity crunch, new exclusions, and major structural shifts in how coverage is being offered amid ongoing unprofitability for insurers in this space.
“We’re calling it the ‘pain train,’ and it’s leaving the station,” McNitt said in an interview with Insurance Business. “We’ve reached a tipping point in hospital liability, and for the first time in years, the market is reacting decisively.”
The 7/1 “pain train” for US hospitals
July 1 marks a key renewal date for many large hospital systems. According to McNitt, the market will see a dramatic tightening of capacity and underwriting appetite at that time.