Obstetrics (OB) continues to be one of the most financially significant areas of medical professional liability, with recent trends  pointing to increasing claim severity and escalating litigation costs. Drawing from the Candello data collaborative, an analysis of obstetrics cases closed between 2020 and 2025 shows that the financial impact of malpractice claims is increasing, driven by rising indemnity payments and a greater likelihood of payment.

Why this matters?

Obstetrics remains one of the highest-severity areas in medical professional liability. While overall claim frequency has declined across many specialties, the financial impact of each obstetrics claim continues to grow. Rising defense costs, increasing indemnity severity, and a larger share of claims closing with payment are collectively accelerating loss development and increasing financial exposure. 

What this means?

For MPL insurers and underwriters, these trends suggest that historical assumptions may no longer fully reflect today’s obstetrics risk environment. As defense expenses and indemnity payments continue to rise, organizations may need to reassess reserve adequacy, OB-specific pricing strategies, and reinsurance structures to ensure they remain aligned with emerging loss experience.


Claims rates are no longer the leading indicator of malpractice risk. Close with pay rates and financial severity are driving everything right now, and the only way address them is to understand the many variables that contribute to them. That’s what Candello is designed for.

Mike P's headshot against a blue background

SME Perspective: Mike Paskavitz

VP, Candello

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