Empirical Analyses of Medical Malpractice Insurance. Executive Summary of FinalReport

摘要

This project examined the organization and performance of the medical malpracticeinsurance industry, the effects of tort reform, and the extent of and prospects for increased 'experience rating' of premiums. The market for malpractice insurance appears to be reasonably competitive, without unduly high profits to insurers when considered in relation to the stage of insurance cycle observed. The widespread tort reforms from the early 1970s through 1987 were legally analyzed and systematically categorized. A 'microanalysis' of insurance claims files from the 1970s and 1980s showed better than any previous work effects on individual claims; the biggest reductions in claims severity came from 'caps' on payments. A 'macroanalysis' of premiums over 1976-87 also found the largest effects from caps; few other reforms had documentable effects. Certain physicians were found to have persistently high-risk experience; rating to reflect such experience, while not widespread, has increased, although such rating is used less than is feasible and desirable.