IDEAS home Printed from
   My bibliography  Save this article

Influences of Organizational Structure and Diversification on Medical malpractice Insurer Performance


  • Yu Lei
  • Joan T. Schmidt


Prior literature has indicated some advantage to physician-directed insurers in the medical malpractice insurance market (Lei and Browne, 2008, and Lei and Schmit, 2008, 2010). We anticipate that these advantages lead to enhanced financial performance, and test that hypothesis. We note, however, that physician-directed insurers tend to be highly specialized both in product line and geography, generating the vast majority of their premium volume from medical malpractice liability insurance in one or just a few states. The advantages of physician-directed insurers could be due to such specialization and concentration, or perhaps be independent of those characteristics. We report our tests of the hypothesis that organizational form, product specialization, and geographic concentration of medical malpractice insurers affect their financial performance. Our results indicate that product diversification is positively related to financial performance. Furthermore, holding product diversification constant, we also find that physician directed insurers show enhanced performance over other organizational forms.

Suggested Citation

  • Yu Lei & Joan T. Schmidt, 2010. "Influences of Organizational Structure and Diversification on Medical malpractice Insurer Performance," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 33(2), pages 152-177.
  • Handle: RePEc:wri:journl:v:33:y:2010:i:2:p:152-177

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:33:y:2010:i:2:p:152-177. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (James Barrese). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.