Medical Professional Liability Insurance Market –By Type, By Claim Type, By Healthcare Sector, By Distribution Channel - Global Forecast, 2025 - 2034

Medical Professional Liability Insurance Market Size

The global medical professional liability insurance market was valued at USD 16.4 billion in 2024. The market is anticipated to grow from USD 18.2 billion in 2025 to USD 46 billion in 2034, growing at a CAGR of 10.8% from 2025 to 2034. The market is foreseeing a steady growth due to the increasing incidence of medical malpractice claims, prompting healthcare providers to seek stronger coverage. Also, growing awareness and risk management initiatives are encouraging proactive adoption of insurance policies.
 

The expanding frequency of malpractice claims is a major factor escalating the development of the market. According to an October 2022 study published by the National Institute for Biotechnology Information, one in three healthcare professionals within the U.S. is sued for medical malpractice during their career. This developing legal exposure is provoking more professionals to seek comprehensive protection coverage to secure against financial and reputational risks.
 

Moreover, the market is also growing because of better risk management practices being adopted by hospitals and clinics. Healthcare providers are now more aware of the risks they face and are taking steps to prevent lawsuits. Insurance companies are helping by offering digital tools and analytics that can spot potential problems early and reduce the chances of claims. These improvements are making insurance more effective and attractive, which is helping the market grow.
 

The medical professional liability insurance market incorporates protection products that secure doctors, nurses, and other healthcare workers from legal claims made by patients. If a patient believes they were harmed due to a mistake or poor care, this insurance helps cover legal costs and settlements. As healthcare has become more complex, and the number of negligence cases is rising, more experts are buying these protections to secure their careers and finances. The market is developing as hospitals and clinics are exploring smarter, tech-driven ways to manage risks and avoid claims.
 

Medical Professional Liability Insurance Market Trends

• The market has witnessed notable advancements in recent years, for example, insurers are now adopting AI-powered platforms that use real-time data to assess risk, automate underwriting, and streamline claims processing. These technologies help reduce administrative costs and improve accuracy, making coverage more efficient and tailored to individual providers.
   
• These innovations are improving outcomes by helping healthcare professionals identify and prevent risks early, reducing the likelihood of lawsuits and financial losses. As medical errors are the third most common cause of death in the U.S., behind only heart disease and cancer, the demand for smarter, tech-enabled insurance solutions continues to rise.
   
• The innovations such as AI powered platforms accessing real-time data, are improving outcomes by helping healthcare professionals identify and prevent risks early, reducing the likelihood of lawsuits and financial losses.
   
• Moreover, digital transformation in healthcare, including telemedicine and electronic health records (Electronic Health Records Market size was valued at USD 34 billion in 2023 growing at a CAGR of 7.4% between 2024 and 2032), is creating new liability risks. Insurers are responding by offering specialized policies that cover these emerging areas, making professional liability insurance more relevant and essential in today’s healthcare environment.
   

Medical Professional Liability Insurance Market Analysis

In 2021, the global market was valued at USD 12.6 billion. The following year, it saw a slight increase to USD 13.7 billion in 2022, and by 2023 and 2024, the market further climbed to USD 15 billion and USD 16.4 billion respectively. Based on type, the global market is segmented into occurrence-based policies, and claims-based policies. The occurrence-based policies segment accounted for the highest market share and was valued at USD 10.2 billion in 2024.
 

• Occurrence-based policies hold a significant share within the medical professional liability insurance market due to their comprehensive coverage, which secures healthcare experts from claims arising from incidents that happened during the policy period, regardless of when the claim is filed. This long-term assurance is highly valued by medical practitioners.
   
• The dominance of this segment is also supported by its wide acknowledgment among healthcare providers, particularly in high-risk specialties, and its ability to offer peace of mind through extended liability coverage. These arrangements are frequently favored over claims-made policies due to their higher perceived reliability and long-term security.
   
• Moreover, the growing healthcare framework, growing awareness of malpractice risks, and accessibility of tailored protections arrangements contribute to the continued strength of occurrence-based policies within the market.
   

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Based on claim type, the global medical professional liability insurance market is categorized into misdiagnosis or delayed diagnosis, childbirth injuries, medication errors, surgical errors, and other claim types. The misdiagnosis or delayed diagnosis segment dominated the market in 2024 and is anticipated to witness growth at a CAGR of 11.3%.
 

• The misdiagnosis or postponed diagnosis segment represents a major portion of the medical proficient liability insurance market, generally due to its high recurrence and significant legal affect. These claims frequently include serious results for patients, such as postponed treatment, worsening conditions, or missed detection of life-threatening illnesses.
   
• Unlike other claim types, misdiagnosis cases tend to result in higher settlement amounts and longer case periods, making them a critical focus for insurers. This segment is particularly important in specialties such as oncology, cardiology, and emergency medication, where diagnostic precision is crucial.
   
• Numerous healthcare suppliers face legal action after patients experience complications due to inaccurate or delayed diagnoses. The strong legal precedence and rising awareness among patients have contributed to the developing number of claims in this category.
• According to 2024 data, misdiagnosis or delayed diagnosis accounts for 32% of all medical malpractice claims within the United States, making it the foremost common basis for case.
   
• Moreover, therapeutic blunders are responsible for around 251,000 deaths annually, accounting for 9.5% of all deaths within the U.S., underscoring the basic need for accurate diagnosis and timely care.
   

Based on the healthcare sector, the global medical professional liability insurance market is categorized into acute care and hospitals, long-term care, ambulatory and outpatient care, mental health and behavioural health, and other healthcare sectors. The acute care and hospitals segment dominated the market and is anticipated to grow at a CAGR of 11.4%.
 

• This dominance is seen due to the high volume of complex medical procedures, increased patient turnover, and greater exposure to malpractice risks in hospital settings.
   
• Hospitals face rising claim frequencies and severities with average indemnity payments growing across the board. According to the Insurance Journal, the frequency of hospital professional liability claims held steady; however, the cost of those claims increased by 3% during 2020-2021. This rise is mostly because some malpractice cases are leading to very large settlements, often running into millions of dollars.  
   
• Additionally, it was observed that the premium cost for malpractice insurance varies a lot depending on the location. For example, doctors in procedural specialties such as surgery or obstetrics pay around USD 50,000 in Los Angeles and while the same coverage in Miami can cost more than USD 226,000 annually.
   
• This big difference shows how location plays a major role in determining risk and insurance cost for hospitals and healthcare professionals.
   

Based on distribution channel, the global medical professional liability insurance market is classified into agents and brokers, direct response, banks, and other distribution channels. In 2024, the agents and brokers segment held highest market share and is expected to showcase significant growth over the analysis period.
 

• Agents and brokers play a critical role in helping hospitals, clinics, and individual practitioners assess risk exposure, compare coverage options, and negotiate tailored policies that meet specific needs. Their involvement is especially valuable in high-risk specialties and large healthcare institutions where liability concerns are more complex.
   
• The segment also benefits from a high concentration of healthcare clients and strong relationships with insurers, which allow brokers to offer competitive pricing and bundled solutions. Their advisory role is increasingly important as malpractice claim severity rises and regulatory requirements evolve.
   
• Moreover, in emerging markets, the expansion of healthcare infrastructure and growing awareness of professional liability risks are driving demand for broker-led insurance solutions. These professionals help bridge the gap between providers and insurers, ensuring adequate coverage and compliance.
   

The North America market dominated the global medical professional liability insurance market with a market share of 42.5% in 2024. The market is driven by the high volume of acute care services and growing awareness towards medical professional liability insurance.
 

The U.S. market was valued at USD 4.9 billion and USD 5.4 billion in 2021 and 2022, respectively. The market size reached USD 6.4 billion in 2024, growing from USD 5.9 billion in 2023.
 

• The U.S. remains the largest contributor to this regional growth due to its complex legal environment, large healthcare infrastructure, and high medical service utilization.
   
• The growing medical litigation, particularly in high-risk specialties such as surgery and obstetrics, is escalating market demand.
   
• The data from various sources show that tens of thousands of malpractice payments are filed every year in the U.S. For instance, a March 2021 study published by the National Center for Biotechnology Information highlights that thousands of cases are filed in courts each year against healthcare professionals due to tort claims.
   
• This reflects a growing demand for medical professional liability insurance and growing financial risk for healthcare providers.
   

Europe medical professional liability insurance market accounted for USD 4.42 billion in 2024 and is anticipated to show lucrative growth over the forecast period.
 

• Expanding awareness among European people with respect to medical malpractices, is anticipated to bolster the development of the market across the region.
   
• In addition, the launch of regional health initiatives has contributed to market expansion. For instance, the EU4 Health program, with a total allocation of about USD 5.9 billion, aims to strengthen healthcare system, and reduce medical errors, thereby enhancing the demand for liability coverage among healthcare professionals.
   
• Also, the way MPLI works varies from country to country, in Sweden, Norway and Finland there are public no fault system that means patients are compensated through government backed programs instead of lawsuits. In these cases, healthcare providers mainly need insurance for legal support and not payouts.
   
• Similarly in Italy and other European countries lawsuits are more frequent and insurance premium are rising; due to these reasons the market is escalating.
   

Germany medical professional liability insurance market is anticipated to witness considerable growth over the analysis period.
 

• The market in Germany is driven by mandatory insurance policies, a structured legal framework, and a strong emphasis on patient safety within the healthcare system.
   
• Additionally, the country is experiencing an increase in medical errors, particularly in surgical therapy and result assessments. According to Statista, approximately 31% of medical malpractice errors in Germany are related to surgical therapy, while 22.6% are associated with result assessments.
   
• Moreover, a 2021 PubMed analysis on pediatric surgery highlighted an annual accusation rate of 5.2% and a conviction rate of 2.27%. This indicates that one in 20 pediatric surgeons in Germany faces malpractice claims annually, further driving the demand for medical professional liability insurance.
   

The Asia Pacific medical professional liability insurance market is anticipated to grow at the highest CAGR of 11.5% during the analysis timeframe.
 

• The market in the Asia Pacific region is growing rapidly due to the rise in complex medical procedures, greater patient safety awareness, and the expansion of private and public health services.
   
• Countries such as China, India and Japan are adopting MPLI more rapidly.
   
• Additionally, the increase in frequency of malpractice claims particularly in high-risk areas along with increasing compensation awards, is encouraging healthcare providers across region to strengthen their liability coverage.
   

China medical professional liability insurance market is predicted to grow significantly over the forecast period.
 

• The country’s large aging population, expanding healthcare sector, and rising malpractice exposure are escalating the market. With over 18% of the population aged 60 and above in 2021 has increased the demand for healthcare services which in turn raises malpractice exposure for healthcare providers.
   
• Additionally, China represents one of the largest healthcare workforce in Asia Pacific region. As per Statista, about 4.78 million medical practitioners were serving in China in 2023. This high volume of medical practitioners contributes to high demand for medical professional liability insurance in the country.
   
• Also, in 2022 there were a total of 5,074 cases of medical malpractice liability dispute which underscores growing need for liability protection mechanisms in China.
   

Brazil is experiencing significant growth in the Latin America medical professional liability insurance market.
 

• The country’s expanding healthcare infrastructure and rising awareness about medical accountability is escalating the market.
   
• With one of the largest healthcare systems in LA, Brazil has over 6,500 hospitals and employs more than 5,00,000 registered physicians, increasing the demand for liability protection among medical professionals.
   
• Moreover, Brazil’s insurance regulator has introduced more flexible guidelines for MPLI leading to increased participation by both domestic and international insurers offering tailored solutions.
   

Saudi Arabia is poised to witness substantial growth in Middle East and Africa medical professional liability insurance market during the forecast period.
 

• The government in Saudi Arabia has made medical malpractice insurance mandatory for all licensed healthcare practitioners under the Saudi Commission for Health Specialties.
   
• This regulation is part of the broader strategy to standardize care quality and reduce litigation risk across the country’s growing healthcare sector.
   
• Additionally, due to the rapidly increasing number of clinics the medical system is becoming more complex. This expansion increases exposure to malpractice risks, especially in high demand specialties.
   

Medical Professional Liability Insurance Market Share

Competition in the global market is characterized by a diverse mix of well-established multinational insurers, innovative emerging firms, and regionally focused players, all striving to expand their market share. Leading companies such as AXA, Allianz, Berkshire Hathaway Specialty Insurance, Chubb, and Tokio Marine HCC collectively account for about 45% of the global market. These top-tier insurers leverage their financial strength, global networks, and advanced risk management capabilities to offer comprehensive and customizable coverage solutions tailored to the evolving needs of healthcare providers.
 

They are also spearheading digital transformation in the sector, incorporating AI-driven underwriting, telehealth liability coverage, and streamlined claims processing to enhance operational efficiency and customer experience. Meanwhile, regional and niche insurers continue to intensify competition by offering cost-effective, flexible policies and engaging in strategic mergers, acquisitions, and innovative product launches.
 

Medical Professional Liability Insurance Market Companies

Few of the prominent players operating in the medical professional liability insurance industry include:

• AXA
• Allianz
• Beazley Group
• Berkshire Hathaway Specialty Insurance
• Chubb
• CNA Financial
• CoverWallet
• Coverys
• Hiscox
• Ignyte Insurance
• Liberty Mutual Group
• MagMutual LLC
• ProAssurance Group
• The Doctors Company
• Tokio Marine HCC
   
• AXA has established itself as one of the key player in insurance and asset management, operating in over 50 countries. In the medical professional liability space, AXA offers tailored coverage solutions for healthcare providers, integrating advanced risk assessment tools and digital platforms to streamline claims and policy management.
   
• Chubb provides a comprehensive range of medical liability insurance products globally, designed to meet the unique risk management needs of healthcare organizations. Known for its underwriting expertise and customer-centric approach, Chubb supports hospitals, clinics, and individual practitioners with customizable coverage options and proactive risk mitigation strategies.
   
• Tokio Marine HCC is recognized for its broad and innovative professional liability offerings, including specialized coverage for allied healthcare professionals, contractors, and insurance agents. The company emphasizes flexibility and speed-to-market solutions, making it a preferred insurer for niche healthcare segments.
   

Medical Professional Liability Insurance Industry News

• In June 2025, Berkshire Hathaway Specialty Insurance announced the launch of its Life Science, BioTech, and Pharmaceutical (LBP) Management Liability Policy in Australia. This new offering is designed to address the complex risk landscape faced by life science companies, including exposures related to clinical trials, regulatory compliance, and product development. The policy provides tailored coverage for directors and officers, employment practices liability, and fiduciary liability, reinforcing BHSI’s commitment to supporting innovation in the healthcare and biotech sectors.
   
• In April 2025, Ignyte Insurance was launched as a new specialty insurance platform, following the acquisition of NSM Insurance Group’s U.S. commercial division by New Mountain Capital. Ignyte aims to drive innovation and growth in specialty insurance through strategic investments in technology, operations, and product development.
   
• In February 2025, NSM Insurance Group announced a definitive agreement to sell its U.S. commercial insurance division to New Mountain Capital, a growth-oriented investment firm managing over 55 billion dollars in assets. The transaction includes NSM’s portfolio of 15 niche insurance programs across Property and Casualty, Accident and Health, and Reinsurance, as well as its retail agency, NSM Insurance Brokers.
   

The medical professional liability insurance market research report includes in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Type

• Occurrence-based policies
• Claims-based policies

Market, By Claim Type

• Misdiagnosis or delayed diagnosis
• Childbirth injuries
• Medication errors
• Surgical errors
• Other claim types

Market, By Healthcare Sector

• Acute care and hospitals
• Long-term care
• Ambulatory and outpatient care
• Mental health and behavioral health
• Other healthcare sectors

Market, By Distribution Channel

• Agents and brokers
• Direct response
• Banks
• Other distribution channels

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE