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P. 50
Healthcare practice
Lockton healthcare 2nd quarter 2020: Managed care market
update
Capacity: Combined overall capacity in the Underwriting: Underwriters push to secure extensive
marketplace the past 3 years, has steadily declined by additional underwriting responses, materials and in
a third. some cases, even new applications being required for
renewal business.
Rates: Current rate trends for MCO and D&O
coverage, follow closely with the overall healthcare Claims and litigation: Without exception, the
marketplace. Primary renewals with little to no claims consolidated Multi-District Litigation (MDL) around
activity, are receiving increasing ranging from 25%, to the Blues plans, has led the charge for signiicant,
as high as 65% on renewals. if not almost altogether complete, reserves being
posted by carriers.
Concerning trends being observed, include excess
carriers seeking 100% of the primary rate — and in Strategy and response: What cannot be said enough
some cases even as high as 150% of the primary at this time is, the need for very targeted and very
premium. In essence, with a hard market and early conversations with incumbent carriers must be
shrinking capacity, Underwriters are becoming more had as early as 4-6 months out prior to expiration.
emboldened to aggressively push rate on excess, with
the full understanding of the limited market interest Lockton puts forth an entrepreneurial spirit, with
in this line of coverage. empowered people, who use creative thinking to
become trusted partners. More information on this
approach can be found at global.locktonco.com/our-
story.
50 Lockton Companies
Lockton healthcare 2nd quarter 2020: Managed care market
update
Capacity: Combined overall capacity in the Underwriting: Underwriters push to secure extensive
marketplace the past 3 years, has steadily declined by additional underwriting responses, materials and in
a third. some cases, even new applications being required for
renewal business.
Rates: Current rate trends for MCO and D&O
coverage, follow closely with the overall healthcare Claims and litigation: Without exception, the
marketplace. Primary renewals with little to no claims consolidated Multi-District Litigation (MDL) around
activity, are receiving increasing ranging from 25%, to the Blues plans, has led the charge for signiicant,
as high as 65% on renewals. if not almost altogether complete, reserves being
posted by carriers.
Concerning trends being observed, include excess
carriers seeking 100% of the primary rate — and in Strategy and response: What cannot be said enough
some cases even as high as 150% of the primary at this time is, the need for very targeted and very
premium. In essence, with a hard market and early conversations with incumbent carriers must be
shrinking capacity, Underwriters are becoming more had as early as 4-6 months out prior to expiration.
emboldened to aggressively push rate on excess, with
the full understanding of the limited market interest Lockton puts forth an entrepreneurial spirit, with
in this line of coverage. empowered people, who use creative thinking to
become trusted partners. More information on this
approach can be found at global.locktonco.com/our-
story.
50 Lockton Companies
