Abstract

http://ssrn.com/abstract=1319375
 
 

Citations (5)



 


 



The Effects of Tort Reform on Medical Malpractice Insurers' Ultimate Losses


Patricia Born


Florida State University - College of Business; Florida State University - College of Law; California State University, Northridge - Department of Finance, Real Estate, & Insurance

W. Kip Viscusi


Vanderbilt University - Law School; National Bureau of Economic Research (NBER); Vanderbilt University - Department of Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Strategy and Business Economics

Tom Baker


University of Pennsylvania Law School


Journal of Risk and Insurance, 2009
Vanderbilt Law and Economics Research Paper No. 08-30
FSU College of Law, Law, Business & Economics Paper No. 09-26

Abstract:     
Whereas the literature evaluating the effect of tort reforms has focused on insurers' reported incurred losses, this paper examines the long run effects of reforms using the developed losses from a comprehensive sample of insurers writing medical malpractice insurance from 1984-2003. The long run effects of reforms are greater than insurers' expected effects, as five year developed losses and ten year developed losses are below the initially reported incurred losses for those years following reform measures. The quantile regressions show that reforms have the greatest effects for the firms that are at the high end of the loss distribution. The beneficial effects of reforms on developed losses are more pronounced than those obtained from initially-reported losses, suggesting that insurers underestimated the true effects of the reforms.

Number of Pages in PDF File: 36

Keywords: tort reform, medical malpractice, insurance, insurance losses, insurers' losses

JEL Classification: I10, K13, G22

Accepted Paper Series


Date posted: December 27, 2008 ; Last revised: October 16, 2009

Suggested Citation

Born, Patricia and Viscusi, W. Kip and Baker, Tom, The Effects of Tort Reform on Medical Malpractice Insurers' Ultimate Losses. Journal of Risk and Insurance, 2009; Vanderbilt Law and Economics Research Paper No. 08-30; FSU College of Law, Law, Business & Economics Paper No. 09-26. Available at SSRN: http://ssrn.com/abstract=1319375

Contact Information

Patricia H. Born
Florida State University - College of Business ( email )
250 Rovetta Business Building
Tallahassee, FL 32306-1110
United States
Florida State University - College of Law
425 W. Jefferson Street
Tallahassee, FL 32306
United States
California State University, Northridge - Department of Finance, Real Estate, & Insurance ( email )
Northridge, CA 91330-8379
United States
W. Kip Viscusi (Contact Author)
Vanderbilt University - Law School ( email )
131 21st Avenue South
Nashville, TN 37203-1181
United States
615-343-7715 (Phone)
615-322-5953 (Fax)
HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Vanderbilt University - Department of Economics
Box 1819 Station B
Nashville, TN 37235
United States
(615) 343-7715 (Phone)
(615) 343-5953 (Fax)
HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
Vanderbilt University - Owen Graduate School of Management
401 21st Avenue South
Nashville, TN 37203
United States
(615) 343-7715 (Phone)
(615) 343-5953 (Fax)
HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
Vanderbilt University - Strategy and Business Economics ( email )
Nashville, TN 37203
United States

Tom Baker
University of Pennsylvania Law School ( email )
3501 Sansom Street
Philadelphia, PA 19104
United States
215-746-2185 (Phone)
HOME PAGE: http://www.law.upenn.edu/cf/faculty/thbaker/
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