Insurers working to adapt to changes in professional liability risks

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Medical Malpractice Insurance

Changing laws spur evolution in insurance industry

The health care landscape in the U.S. has changed in the two years after the Affordable Care Act was signed into law. Though the future of the law now rests in the hands of the U.S. Supreme Court, the changes it brought to health care and the insurance industry has caused a shift in professional liability risks. Even if the law is overturned, these risks are expected to weigh heavy on insurance companies that provide coverage for health care professionals. Insurers, however, are not known for their inability to adapt to changing risks.

Insurers may be poised to adapt to the changes that come their way

The insurance industry has proven itself to be flexible in meeting new challenges presented by changes in laws and regulations. After the Affordable Care Act was passed in 2010, many insurers made efforts to adopt more efficient underwriting practices to specifically address exposures to liability risks. Jim Fatone, senior vice president of Alliant Insurance Services, an insurer that specializes in professional liability coverage for those working in the health care industry, believes that the health insurance sector is well situated to address evolving risks.

Hospitals becoming more exposed to malpractice claims

One of the changes that is becoming most apparent in the health care industry is the trend of hospitals and other medical care organizations hiring physicians and other professionals. In the past, these entities have typically contracted professionals rather than hiring them outright. This trend is exposing hospitals to direct malpractice risk, something that insurers have had to account for by improving the policies they provide for this particular issue.

Industry expected to thrive despite changes in risk landscape

Fatone notes that numerous factors are contributing to changes in the health insurance industry, particularly higher regulatory scrutiny. Health insurance has become a popular topic in the U.S., especially as health care laws gain more attention. This has brought many insurance companies into the limelight, where their actions are being criticized or praised. Fatone believes that the health insurance industry will be able to thrive beneath the pressure created by changes in health care laws, however.

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