2025 State of the Healthcare Market
Our Healthcare & Human Services team recently attended the PLUS Healthcare & MedPL Symposium. The event brought together industry leaders for educational sessions and valuable networking opportunities. Below is a summary of the team’s key takeaways from the event.
Market-Wide Observations
The healthcare insurance landscape is experiencing heightened competition, with newer markets entering aggressively—particularly in pricing and underwriting. This volatility could lead to rapid market exits. Submission counts remain high, with expectations for growth from markets. However, despite the positive outlook, there are concerns with specific exposures such as abuse and HNOA, and there is still a very limited appetite for correctional risks.
Physicians Market
Premiums in the physicians’ market are trending upward, with an average increase of 5%. A major development is the reduction of tort reform in New Mexico, which has led to significant verdicts such as the $35 million judgment that resulted in the collapse of Care RRG. This highlights the volatility of the market, especially for risk retention groups (RRGs), focused on high-risk specialties like family medicine and OB-GYN in states such as New York, Florida, and California.
With claim activity now double the national average, carriers are becoming more cautious. Still, some markets remain committed, and others are even looking to expand their footprint in this space.
Social Services Market
The social services sector is facing disruption, particularly in coverage for adoption and foster care risks. This instability is expected to drive rate increases and has already prompted some carriers to exit the space. While these changes may create new opportunities, they also introduce challenges as the market adjusts.
Underwriting appetite remains largely unchanged for most social service accounts, except for larger accounts over $500k in premium. There’s a noticeable increase in submissions for behavioral health risks, including ABA therapy, outpatient and inpatient services, and sober living facilities. Large accounts ($250k–$1M) may attract primary coverage from carriers, which could indicate a potential strategy for how these risks are being approached from an underwriting perspective.
Long-Term Care
Several RRGs, including MIG and MMIC, continue to compete in the long-term care space, though some are showing signs of stress. Claims experience remains steady but costly, with frequent indemnity payouts for falls, improper care and wound-related issues. These claims continue to be significant concerns for carriers in this segment.
Allied Healthcare
The allied health market is showing signs of softening. Despite carriers operating at combined ratios above 100%, the market remains competitive, and carriers are open for new business. We are continuing to see significant increases in GLP-1 related risks, specifically when used for weight-loss purposes. Classes that we are seeing carriers interested in writing include home health, hospice, clinics, surgery centers, labs, imaging and pharmacies.
Final Thoughts
The 2025 healthcare insurance market is marked by both volatility and opportunity. From shifting carrier strategies and market exits to evolving risks in social services and physician coverage, the landscape is dynamic and complex. Carriers are navigating rising loss costs and nuclear verdicts while staying alert to potential growth areas—particularly in allied healthcare.
At Arlington/Roe, our Healthcare & Human Services team is committed to staying ahead of market trends and sharing market knowledge. Whether you’re managing complex risks or exploring emerging coverage needs, we’re here to help you find the right solution.
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