Rising verdicts, shifting coverage and an uncertain road ahead

Healthcare liability carriers are facing mounting pressures — from unsustainable loss ratios and increasing nuclear verdicts to rising labor costs and segment-specific exposures. While some areas still attract competitive behavior, many others are straining under elevated premiums and shrinking capacity.

In the 2025 Healthcare Market Outlook, RPS examines the market dynamics across a wide range of healthcare segments, including hospitals, physicians, senior living, social services, allied healthcare and correctional care. The result is a sharp look at which areas still offer opportunities and where brokers will need to be creative.

Inside the outlook

  1. Profitability pressure is rising. Carrier loss ratios remain unsustainable in several healthcare liability segments, even as quoting behavior remains aggressive in pockets of the market.
  2. Nuclear verdicts are reshaping the landscape. Abuse-related claims and shifting jury expectations are pushing claim values higher — especially in hospitals, social services and residential care.
  3. Capacity continues to contract. Physicians, staffing firms and correctional care providers are finding fewer carrier options and stricter underwriting requirements.
  4. Allied healthcare remains a bright spot. Outpatient services, home health and pharmacies continue to attract competition and rate stability.
  5. Strategic storytelling is key. In today's market, early engagement and strong renewal narratives can help brokers secure better outcomes for clients.

Get the full 2025 US Healthcare Market Outlook to discover where the market is headed, what risks are reshaping the space and how brokers can stay ahead of it all.

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