ClickCease Record Profits for Malpractice Insurance Companies
07/25/07   |   By

Report Reveals Record Profits for Malpractice Insurance Companies | DC Metro Area Personal Injury Law Blog

5 stars

The profitability of selling medical malpractice insurance has skyrocketed in recent years, and consequently, most malpractice insurance companies have routinely “over-reserved” (set aside more profit) than is necessary.  These are among the findings of former Missouri Insurance Commissioner Jay Angoff, who recently analyzed the 2006 financial statements of the 15 largest medical malpractice insurance companies in the U.S., and issued a report entitled, “No Basis for High Insurance Rates:  An Analysis of the 15 Largest Medical Malpractice Insurers’ 2006 Financial Statements.”

According to the Angoff Report, the 15 largest insurers paid out an average of 31.4 cents in claims for every dollar they collected in 2006.  That means that for every $1 that a hospital or health care provider paid in insurance premiums, insurance companies were able to keep 68.6 cents, using that money to fund, “…executive salaries, marketing and advertising, and lawyers and lobbyists,” among other things.  What the companies didn’t spend on those things, they continued to hold in reserve.

Further, the report notes that over the last three years, the economic losses of the 15 largest insurers fell by 50%, even as many publicly claimed that their losses were increasing.

The report comes at a time when physicians and other health care providers are decrying the prohibitive cost of malpractice insurance, and while health care costs in the U.S. continue to rise exponentially.  The Angoff Report shows, among other things, the flawed logic underpinning current tort reform measures, and illustrates the critical need for better regulation of the insurance industry.For information about your legal rights, please click here or call the law firm of Regan Zambri & Long, PLLC at (202) 463-3030.

Regan Zambri Long
Posted In
Share This Article

Schedule a Free Consultation

Have you or your loved one sustained injuries in Washington DC, Maryland or Virginia? Regan Zambri Long PLLC has the best lawyers in the country to analyze your case and answer the questions you may have.

Call 202-960-4596

  • Please do not send any confidential or sensitive information in this form. This form sends information by non-encrypted email, which is not secure. Submitting this form does not create an attorney-client relationship.

  • This field is for validation purposes and should be left unchanged.

Back to Top