Inflation Added $4 Billion to Medical Malpractice Losses, The Doctors Company Study Finds

Napa, California-September 8, 2025-The Doctors Company, the nation's largest physician-owned medical malpractice insurer, part of TDC Group, today released new research indicating that inflation-both economic and social-has added an estimated $4 billion in insured losses and expenses to the medical malpractice insurance market over the past decade.

The study, Nuclear Verdicts and Rising Costs: How Inflation Is Impacting Medical Malpractice Claims, found that the $4 billion in losses from inflation represent 11 percent of booked losses for the decade ending in 2024. This was a significant increase from the $2.4 to $3.5 billion (8 to 11 percent) that was found in the company's 2023 research report that addressed the impact of social inflation on medical malpractice claims for the decade ending in 2021. The latest research confirms that inflation is not only persistent-it's accelerating.

"Nuclear verdicts continue to increase at a drastic rate: The average of the top 50 medical malpractice verdicts was $32 million in 2022, $48 million in 2023, and an alarming $56 million in 2024," said Robert E. White, Jr., President of TDC Group. "Physicians are facing rising premiums driven by both economic pressures and the continued increase in large settlements. We will continue to research and raise awareness of this concerning trend that affects physicians and patients."

Key Study Findings

• Combined impact:Combined economic and social inflation added $4 billion in losses-up $1.6 billion from the previous estimate.
• Large settlements are rising:Reports of claims exceeding $2 million have increased more than tenfold since 1990.
• Post-pandemic surge:The frequency of high-dollar claims rebounded sharply in 2023 after a pandemic-era dip.

Third-party litigation financing-where private investors fund lawsuits in exchange for a portion of the settlement-is also emerging as a potential driver of social inflation, projected to cost insurers between $13 and $25 billion over the next five years.

"Malpractice verdicts are intended to make a patient whole, not to enrich attorneys or private investors," Mr. White said. "The Doctors Company will continue to advocate for meaningful tort reform and stand with physicians against these escalating litigation costs that threaten access to care."

The study, conducted by Moore Actuarial Consulting, LLC, on behalf of The Doctors Company, incorporates updated data from the National Practitioner Data Bank and insurance company annual statements through year-end 2024.

About The Doctors Company

Founded and led by physicians, The Doctors Company (thedoctors.com), the nation's largest physician-owned medical malpractice insurer, is relentlessly committed to advancing, protecting, and rewarding the practice of good medicine. The Doctors Company helps physicians manage the complexities of today's healthcare environment-with expert guidance, resources, and coverage-and is the only medical malpractice insurer with an advocacy program covering all 50 states and the federal level. The Doctors Company is part of TDC Group (tdcg.com), the nation's largest physician-owned provider of insurance and risk management solutions. TDC Group serves the full continuum of care, from individual physicians to academic medical systems-over 119,000 healthcare professionals and organizations nationwide-with annual revenue of $1 billion and over $7.8 billion in assets. To learn more about our data-driven insights and to stay up to date on industry trends, follow and subscribe to The Doctors Company on X (@doctorscompany), YouTube, LinkedIn, and Facebook.