A Smoking Gun?: A Dramatic Mismatch Between Malpractice Insurance Premiums Collected and Net Claims Paid

According to the Center for Justice and Democracy, a consumer advocacy group, between 2000 and 2004:

• while net malpractice claims paid did not increase, the increase in malpractice insurer premiums collected by 15 large insurers nationwide was 21 times the the increase in paid claims, and, over the same period,
• the incurred-loss ratio--the ratio of claims to premiums collected--for the 15 insurers decreased almost 25% to 51.4%.

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