“Verdicts are becoming so large that the term ‘nuclear verdict’ almost feels inadequate”
Jordan Connelly,
Amwins
“Collaboration is key – understanding insured needs, contractual requirements, and building solutions that still allow them to assemble necessary coverage”
Greg Ferrell,
Admiral Insurance Group
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The ‘toughest market’ for human services
Rising claims severity, legal shifts, and reduced carrier appetite are reshaping underwriting conditions, pushing more risks into the E&S market and forcing retailers to rethink coverage strategies and program structures
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Joe Carlson
Amwins
Jordan Connelly
Amwins
Greg Ferrell
Admiral Insurance Group
Industry experts
The human and social services insurance market is undergoing one of its most significant transformations in decades, as carriers, brokers, and insureds grapple with rising claims severity and evolving legal landscapes.
During a virtual roundtable, industry leaders highlighted a market under strain and rapidly adapting to new realities. They highlighted a complex array of legal, social, and economic forces that have made underwriting human and social service organizations more complex than ever.
“This is the toughest market we’ve seen in a long time for human and social services,” said Jordan Connelly, executive vice president and healthcare practice leader at Amwins.
“There’s a shift in attitude toward human and social service providers. The major crux of the issue in the human and social services marketplace right now is that the package marketplace is non-renewing or reducing limits on a lot of these risks.”
A perfect storm: legal and financial pressures on the human and social services industry One of the most consequential developments affecting the sector is the widespread expansion, or outright removal, of statutes of limitations for abuse-related claims.
These legislative changes, often referred to as “look-back windows,” allow plaintiffs to file lawsuits decades after alleged incidents, and they have significantly impacted claims.
“Carriers are reducing limits, which makes building excess coverage more difficult,” said Connelly. “Combined with unpredictable juries, this creates a very challenging environment. Without meaningful tort reform, it will likely remain difficult.”
Amwins is the largest independent wholesale distributor of specialty insurance products in the US, dedicated to serving retail insurance agents by providing property and casualty products, specialty group benefits and administrative services. Based in Charlotte, NC, the company operates through more than 155 offices globally and handles premium placements in excess of $50 billion annually.
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Joe Carlson is a senior vice president specializing in healthcare and human services at Amwins Brokerage in Chicago. He has built a strong reputation as an industry expert in areas including general liability, professional liability, abuse coverage, umbrella, and excess lines. Carlson has been instrumental in expanding Amwins’ healthcare unit, leveraging his deep understanding of specialized healthcare markets to support growth and deliver tailored solutions for clients.
Amwins
Joe Carlson
Jordan Connelly is an executive vice president and co-leader of the national healthcare practice at Amwins. After beginning her career at Swett & Crawford in Atlanta, GA, Connelly transitioned to Worldwide Facilities in 2014 to lead the Atlanta operation and expand the healthcare practice for the Eastern division. Under her leadership, the office grew to become the fifth-largest within Worldwide Facilities. In 2021, Worldwide Facilities was acquired by Amwins, where Connelly continues to drive growth for both her team and the healthcare practice nationwide.
Amwins
Jordan Connelly
Greg Ferrell serves as the national vice president of professional liability and head of healthcare at Admiral Insurance Group, where he oversees the company’s national medical professional liability portfolio across five branch offices. With more than two decades of experience in the insurance industry, Ferrell has built a distinguished career in the medical and healthcare underwriting space. His leadership journey includes roles as assistant director of healthcare, zone practice leader, and senior underwriter, giving him a deep and practical understanding of the evolving risks and dynamics within the healthcare sector.
Admiral Insurance Group
Greg Ferrell
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Published August 25, 2026
According to data from the Insurance Information Institute, liability claim costs have risen sharply in recent years, with social inflation adding billions to insurer payouts annually. In abuse-related cases specifically, the National Association of Insurance Commissioners (NAIC) has noted increasing frequency and severity tied to extended reporting periods.
As one roundtable participant observed, the result is a surge in long-tail liabilities. Policies written years ago are now being triggered by newly filed claims, exposing multiple policy years and compounding losses for insurers.
Exacerbating this issue is the historical use of occurrence-based policies in the human and social services space. Unlike claims-made policies, occurrence forms can be triggered years after the policy
period, leaving carriers exposed to legacy risks that were often underpriced at the time.
‘Nuclear verdicts’ add persistent pressure Another defining feature of the current environment is the rise of so-called nuclear verdicts, or jury awards exceeding $10 million. While the term has become commonplace, Connelly said it no longer captures the scale of today’s losses.
“Verdicts are becoming so large that the term ‘nuclear verdict’ almost feels inadequate,” said Connelly. “That’s pushed business into the E&S market. While E&S has responded, it means higher rates, restricted coverage, and less capacity.”
Research from the US Chamber of Commerce Institute for Legal Reform shows that nuclear verdicts have increased in both frequency and size over the past decade, with median awards rising significantly. Human and social services organizations, which often serve vulnerable populations, are particularly susceptible to large jury awards due to the emotional nature of claims.
Plaintiffs’ attorneys are increasingly targeting these
organizations, recognizing that cases involving children, the elderly, or individuals with disabilities can resonate strongly with juries.
“The courtroom optics are very compelling, and attorneys know they can gain attention quickly,” said Joe Carlson, executive vice president, healthcare and human services broker at Amwins. “As a result, losses are piling up.”
According to Greg Ferrell, national vice president of underwriting at Admiral Insurance Group, the concept of “safe venues” has largely disappeared, making the legal environment far more unpredictable. “We’re no longer dealing, at least on the underwriting side, with a geographic map that only has four or five problematic venues,” Ferrell said.
Evolving risk profiles and coverage gaps Beyond legal pressures, the risk landscape itself is changing as healthcare clients branch out to offer new services. These developments require updated underwriting frameworks and policy structures.
“Organizations are expanding due to funding and evolving needs. That includes telehealth and mobile operations, which introduce new exposures,” noted Carlson. “We need to anticipate these changes and adapt coverage accordingly.”
Historically, secondary exposures, such as hired and non-owned auto liability or abuse-related claims, are now primary drivers of loss.
This evolution has exposed gaps in traditional coverage structures. For example, many insureds assume that sexual abuse liability policies also cover physical abuse, when in fact these are often treated as separate exposures. Physical abuse may fall under general liability, creating potential coverage ambiguities.
The lack of standardized definitions across policies further complicates matters. The specialists pointed to the need for clearer communication between brokers, underwriters, and insureds to ensure that coverage aligns with actual exposures.
Underwriting in an era of complexity In this environment, underwriting has become more granular and data driven. Insurers are placing greater emphasis on understanding the full scope of an organization’s operations, from residential services and transportation practices to staffing levels and security protocols.
Ferrell said that underwriters are now looking for “a thorough understanding of what the insured actually does.”
“Risks have grown more complex, but insurance programs haven’t always kept pace,” he added. “We look at the scope of operations, exposure types, loss history, and most importantly, risk management.”
From standard market to E&S For decades, the standard insurance market provided relatively stable and affordable coverage for human and social services organizations. Today, however, carriers are increasingly reducing limits, tightening underwriting guidelines, or exiting the space altogether. This retrenchment has pushed a growing share of business into the excess and surplus (E&S) market, which can handle higher-risk, more complex accounts.
According to AM Best, the US E&S market has seen double-digit premium growth in recent years, reaching over $80 billion in direct premiums written. Much of that growth is being driven by distressed classes such as human and social services.
“While the market is challenging, the E&S sector has responded with more capacity,” Connelly said.
However, the shift comes at a cost. E&S coverage is typically more expensive, with higher deductibles, more restrictive terms, and less capacity. Programs that once featured $5 million or $10 million layers are now being constructed in smaller $1 million or $2 million increments, reflecting a more cautious underwriting approach.
Innovation and collaboration as pathways forward The specialists agreed that the human and social services insurance market is unlikely to stabilize in the near term without meaningful tort reform. Continued growth in service demand, combined with legal and economic pressures, suggests that complexity will remain a defining feature.
However, there are reasons for cautious optimism: the industry’s ability to adapt through improved risk management offers a path forward.
“These programs serve vulnerable and underserved populations,” said Connelly. “They’re essential to communities, so brokers and carriers need to find ways to support them and keep them operational.”
“Organizations are expanding due to funding and evolving needs, including telehealth and mobile operations, which introduce new exposures. We need to anticipate these changes and adapt coverage accordingly”
Joe Carlson,
Amwins
Ferrell added, “Collaboration is key. That includes understanding insured needs, contractual requirements, and building solutions that still allow them to assemble necessary coverage.”
Amid the uncertainty, innovation is emerging as a key theme. Brokers and carriers are developing new products, including manuscript policies tailored to specific exposures. Strategic partnerships are also helping expand capacity and address coverage gaps.
Wholesale brokers, in particular, are positioned to bridge gaps between retail brokers and carriers, offering specialized expertise and access to niche markets.
“At Amwins, we bring market access, expertise, and claims advocacy, along with insights into tort reform and loss trends,” Connelly said.
“Specialization is critical,” Carlson added. “We can create solutions with manuscript wording and develop new products to address gaps.”
Amwins now offers an exclusive product tailored to the unique needs of human services and behavioral health organizations. Backed by highly rated specialty E&S carriers, this product delivers stable, scalable Professional Liability and General Liability capacity with dedicated Sexual Abuse & Molestation (SAM) limits, as well as HNOA and Umbrella/Excess Liability.
Learn more about Amwins’ exclusive human services and behavioral health product here or by contacting your Amwins healthcare broker. If you don’t have an Amwins broker, complete this form and we’ll connect you with a specialist.
Source: Insurance Information Institute; National Association of Insurance Commissioners
Liability claims costs rising by billions annually
Longer reporting periods extending exposure timelines
Social inflation drives liability costs higher
Abuse claims increasing in frequency and severity
E&S market absorbs distressed risks
Double-digit growth in recent years
US E&S premiums surpass $80 billion
Growth driven by healthcare and human services classes
Risk management has emerged as a critical differentiator. Organizations that can demonstrate proactive measures, such as employee background checks, driver-monitoring programs, and robust abuse-prevention policies, are more likely to secure favorable terms.
“Proactive risk management, not just reactive measures after a claim, is key,” said Ferrell. “The better that story is presented, the more positively an underwriter will view the account.”