Medical malpractice claims inflation: a global perspective

Our global healthcare lawyers in Australia, Canada, Denmark, England, France, Hong Kong, Ireland, Israel, Latin America and Spain explore the extent to which these jurisdictions are experiencing medical malpractice claims inflation.

Inevitably, where economic inflation has risen more steeply in recent years, this is reflected in the claims inflation being experienced. In contrast, the experience in other jurisdictions, such as Hong Kong and Israel, has been of more gradual and moderate economic inflation, and consequently modest claims inflation. Higher medical inflation is expected in Hong Kong in the year ahead.

In Canada, legislation requires the cap on general damages awards to be adjusted for inflation. Elsewhere, in Denmark, an increase in damages awards is mostly associated with the level of interest that is applied to the awards in accordance with legislation, rather than as a consequence of a rise in the level of particular aspects of the damages award itself.

For those dealing with medical malpractice claims in England, with the exception of general damages, the greatest claims inflation is seen in the life changing claims where there are extensive care, accommodation and earnings claims.

We will continue to track medical malpractice claims inflation globally to assist indemnifiers in setting damages reserves.