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Medical Malpractice Insurance in the Wake of Liability Reform

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Author Info
Viscusi, W Kip
Born, Patricia

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Abstract

This article examines the effect of the liability reforms on medical malpractice insurance over the 1984-91 period. This is the first study to use data by firm and by state for every firm writing medical malpractice insurance over that time period. The liability reforms increased insurance profitability (that is, decreased the loss ratios), where the main mechanism of influence was through decreasing losses. The quantile regression estimates imply that the greatest effects of liability reform are on the most unprofitable firms and that the effect is not uniform across the entire market. This pattern is consistent with the other principal finding, which is that damages caps appear to be most influential. Copyright 1995 by the University of Chicago.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Legal Studies.

Volume (Year): 24 (1995)
Issue (Month): 2 (June)
Pages: 463-90
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Handle: RePEc:ucp:jlstud:v:24:y:1995:i:2:p:463-90

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  1. Patricia Born & W. Kip Viscusi & Tom Baker, 2006. "The Effects of Tort Reform on Medical Malpractice Insurers' Ultimate Losses," NBER Working Papers 12086, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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