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Dynamics of the Market for Medical Malpractice Insurance
Author(s) -
Neale Faith R.,
Eastman Kevin L.,
Peterson Drake Pamela
Publication year - 2009
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/j.1539-6975.2009.01295.x
Subject(s) - actuarial science , malpractice , business , earnings , investment (military) , medical malpractice , malpractice insurance , monetary economics , liability insurance , economics , insurance policy , finance , law , politics , political science
Public attention has been directed recently at the market for medical malpractice insurance, yet disagreement persists over whether this market has changed and, if so, what has caused this change. In this study, we examine factors that affect the market for this insurance, including the growth in premiums, losses, and investment earnings, and loss variability. Our analysis suggests that there was significant deterioration in the market for medical malpractice insurance beginning in 1998 and culminating in 2001. We conclude that insurers' losses are the primary driver of the market deterioration during the period 1998 through 2003.