Quick-read guide for private practices and clinic owners in Scottsdale, AZ.
What’s Happening?
- Average annual premiums rose 8-15 % in the past 12 months.
- OB/GYN rates now top $70 k for standard $1 M / $3 M limits.
- Nearly 1 out of every 2 U.S. policies saw an increase from 2023 → 2024.
- Local mutual carrier MICA returned an 18 % dividend—helpful but not enough to offset overall hikes.
Why Are Rates Climbing?
- Higher claim severity: Several recent multimillion-dollar verdicts in Maricopa County.
- Reinsurance costs up 10-12 %, pushing carrier base rates higher.
- Legal environment: 2024 Arizona Supreme Court ruling tightened expert-witness rules, increasing defense costs. Case summary
- National hard market: Loss ratios above 70 % across many carriers. AMA Market Outlook 2025
Who Feels the Pinch Most?
- High-risk specialties (OB/GYN, general surgery, orthopedics).
- New or moonlighting physicians on claims-made policies—intro discounts burn off fast.
- Solo practices without group purchasing leverage.
Where Can Scottsdale Doctors Still Find Savings?
- Risk-management credits: Up to 10 % for CME courses, EHR safety audits, mock depositions.
- Dividend-paying mutuals: Staying with a physician-owned carrier like MICA can soften spikes.
- Group captives & RRGs: Viable if you have ≥ 10 providers willing to share risk.
When Might Relief Arrive?
- Rate filings began climbing in late 2022 and continued through Q2 2025.
- Analysts expect a hard market at least through 2026, barring a drop in claim severity.
How to Push Your Premium Back Down
- Start shopping 120 days before renewal—gives brokers time to access both admitted and surplus lines.
- Consider a higher deductible (e.g., $10 k → $25 k) if cash flow allows; saves ~5-7 %.
- Bundle tail coverage up front when changing carriers to avoid retirement-surprise costs.
- Document protocols: informed consent procedures, telehealth checklists, and peer reviews help qualify for extra credits.
Key Take-Aways
- Expect mid-single- to low-double-digit increases again at 2025 renewal.
- High-risk specialties must be proactive—risk-management course completion and loyalty dividends can shave real dollars.
- Early renewal prep = leverage. Waiting until the last-minute narrows carrier options and eliminates room to negotiate.
Sources
- MEDPLI – 2025 Arizona Medical Malpractice Buying Guide
- AMA Policy Research Perspective (2025): Upward Trajectory of Medical Liability Premiums
- AMA News: Is Medical Liability Insurance Headed Toward a Hard Market in 2025?
- MICA Press Release (Jan 2024): $15 M (18 %) Dividend Declared
- Arizona Supreme Court Decision Summary (2024)
Need a line-by-line coverage review? Contact Inszone’s MedMal team for a complimentary risk-management check-up before your next renewal.