According to a atatement by the Connecticut Attorney General, insurers themselves are to blame for the increase in medical malpractice insurance costs. (See here, choose Press Releases for 2005, and see the release for July 7, 2005.) Some key quotes:
Insurers are reaping gratuitous surpluses.
The numbers underscore the need for much tougher, more aggressive oversight to prevent and punish profiteering.
Insurance company greed can be hazardous to our health.
The statement does not mention that 60% of physicians nationally are insured by physician owned insurers (according to the PIAA, 2003). Nor does it mention that very few large insurers are involved in insuring physicians (note St Paul’s withdrawal).
The AG based his comments on a study conducted by the Center for Justice & Democracy. The study cited (see here) focuses on medical malpractice premiums and paid claims for a number of insurers. Not much commentary on combined ratio or profitability, but the author clearly has an agenda.
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