Increased Losses Behind Med Mal Crisis
Thursday, July 31st, 2003 LiabilityAccording to a report released on July 28 by the United States General Accounting Office (GAO), the primary driver of the current medical liability insurance crisis is increasing claim costs, not net investment losses by insurance companies as argued by trial lawyers and consumer groups. The GAO finds that medical malpractice insurers have not "experienced net losses on their investment portfolios," but have been required to significantly raise insurance rates due to rising claim costs, reduced investment income from interest on the bonds they hold, and increasing costs for the reinsurance they purchase. "While the results of this study are gratifying, they are not surprising in the least," said NAMIC‘s Legislative and Regulatory Counsel Peter Bisbecos. "It is nice to see another reputable source reporting the facts about the medical malpractice crisis."
