How the surge in medical malpractice claims in Singapore affects insurance premiums

Recent legal developments indicate a potential rise in malpractice claims, which may lead to increased insurance premiums for doctors.

In Singapore, recent legal developments and an uptick in medical malpractice claims are raising concerns about the potential impact on insurance premiums for healthcare providers. The situation is becoming complex, with two legal cases suggesting that future malpractice claims could result in larger payouts, potentially driving up insurance costs. 

According to Melvin See, Deputy Head of Dentons Rodyk's Litigation and Dispute Resolution Department, during the pandemic, the number of consultations as well as procedures carried out by doctors took a dip, and with fewer consultations and procedures, there obviously would be a lower number of claims based on the probability of errors occurring. 

“So, with the uptick in consultations and procedures following the end of the pandemic, we do see, anecdotally, an increasing trend in the number of claims being made,” he said.

Mike Griffiths, Regional Director of Healthcare at Howden Group echoed these sentiments, noting a significant increase in claims notifications from doctors as clinics reopened. However, he emphasized that this trend is more about volume rather than severity. "We're not seeing any great uptick in the mega claims, if you like, but definitely there's a greater frequency of claims coming through."

Implications for insurance premiums

The rise in malpractice claims raises questions about the potential impact on insurance premiums for healthcare providers. While Griffiths believes that there is currently no immediate cause for concern, he acknowledges that continued increases in claims could eventually lead to higher premiums. 

"At the moment, there's nothing that is drastic enough for us to be concerned that premiums are going to rise," Griffiths said. "There were relatively few claims, simply because there were relatively few people attending clinics. So what we're seeing now is a correction, a return to normality. Unless this trend continues, it would eventually become an issue. But for the present, I don't think there's any meaningful pressure on premium rates."

See offered a complementary perspective, suggesting that increased claims could exert upward pressure on premiums due to the associated defense costs. "I would have thought that with increasing claims notifications, there would be some upward pressure on premiums, because with every claim, even if it is without merit, it would still need to be looked at and defended by lawyers on behalf of the doctors before leading to a resolution," See noted. "So with the uptick, we would have thought that there would be some increased defense costs incurred, and therefore a higher pressure on premiums."

Future outlook for malpractice claims

Looking ahead, Griffiths pointed out an emerging trend in malpractice claims driven by the increasing cost of healthcare. "The trend that we’re seeing at the moment is an increasing number of malpractice claims that, on the face of it, don't appear to have a great deal of merit, but which have been brought in cases where the patient is under financial pressure in trying to meet the medical bills," Griffiths observed. "The increasing cost of healthcare itself is leading to a rise in allegations of malpractice, where patients simply find themselves in difficulty trying to meet the cost of care."

See also noted a recent legal development that could influence the assessment of damages in malpractice claims. "In a recent High Court decision, the court indicated its willingness to consider giving a discount to the amount of damages assessed under the Singapore actuarial tables," See shared. "This is the first judgment of the Singapore High Court that has articulated this in some detail, and so I think that may help in some way ameliorate any increase in damages that we are fearing."