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The Effects of Tort Reform on Medical Malpractice Insurance Markets: An Empirical Analysis

I use statewide loss ratio data to assess empirically the manner in which tort reforms have affected relative prices and profitability, and underwriting risk in the medical malpractice insurance industry. The empirical evidence suggests that the imposition of statutory ceilings on recoveries both decreased risk and improved relative profitability. Reforms that codified the required standard of care appeared to have a beneficial effect on relative profitability in certain cases.

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				S. J. Spurr and W. O. Simmons Medical Malpractice in Michigan: An Economic Analysis Journal of Health Politics Policy and Law, June 1, 1996; 21(2): 315 - 346. [Abstract] [PDF]