2024 Aon/ASHRM Hospital and Physician Professional Liability Benchmark Analysis

2024 Aon/ASHRM HPL Benchmark Analysis

Aon is pleased to release the 25th annual edition of the Aon/ASHRM Hospital and Physician Professional Liability Benchmark Analysis. Similar to prior years, Aon’s National Healthcare practice has supported the production of this benchmark report which serves to inform the healthcare industry on medical professional liability claim cost trends.

The report analyzes this year’s hospital professional liability (HPL) and physician professional liability (PPL) claims database that consists of 97,100 non-zero claims that occurred between 2014 and 2023 and are worth $27.0 billion in incurred losses. In addition, the database also includes 13,300 non-zero general liability (GL) claims that represent $564 million in incurred losses that occurred between 2014 and 2023.

This report provides actuarial and underwriting insights on:

Countrywide HPL, PPL, and GL benchmark claim frequency, severity, and loss rates based on this year’s database of 113 systems.
The countrywide severity and loss rate estimates have been developed to $5M per occurrence.
Forecasted 2025 excess layer loss rates in $5M increments up to $25 million.
The effect of the COVID-19 pandemic on medical malpractice claim frequency and severity.
An analysis on how caps on medical malpractice claims have restrained claim values by state.
An analysis of hospital exposures including revised exposure relativity factors.
Healthcare risk management department characteristics, including insights on risk professionals and Certified Professional in Healthcare Risk Management (CPHRMs) employed, telemedicine, home health, and cancer treatment along with revenue and days cash on hand movements.
A look at the insurance structures, alternative risk vehicles, and treatment of allocated loss adjustment expenses of healthcare entities.
An analysis of closed claim statistics including the average indemnity and expense paid by states, departments, and other demographics.
Benchmark claim frequency, severity, and loss rates by hospital service line, demographics, and size of hospital system.
Benchmark statistics for thirty-three individual states that include territory breakouts for Florida, Illinois, and Pennsylvania. The remaining states have been grouped together in one of three groups: Low, Medium, and High Cost states. The data volume for each of these geographies lends itself to credible actuarial analyses while also maintaining participants’ confidentiality.

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About the Benchmark

This benchmark study is produced under a co-marketing agreement between Aon and The American Society for Health Care Risk Management (ASHRM). Participation in this benchmark was open to all ASHRM members.

The study is designed as a hands-on tool to provide healthcare risk managers with a better understanding of their cost of risk compared to an industry benchmark. Through measurement, analysis, and comparison of the claim and exposure data, risk managers and other stakeholders are able to develop proactive strategies to reduce risk-related costs and improve claim outcomes.

We are grateful to benchmark participants for their interest in engaging with us on this survey and for making the time and effort to provide their data and responses to us.

If you would like to participate in future benchmarking studies or have any questions, please contact us at hpl.benchmark@aon.com.