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Medical liability insurance rates stabilizing

Physician Practice Advisor, November 1, 2006

Medical malpractice insurance rates are stabilizing after skyrocketing in the early 2000s, according to an analysis of the Council of Insurance Agents and Brokers quarterly survey of market conditions. Rising rates in most lines of insurance between 2000 and 2003 led to record industry profits, but analysts say the industry has now entered a soft market (i.e., rates are declining).

The rate slowdown can be attributed to the insurance industry's economic cycle rather than tort reform advocacy, according to an Insurance Journal report.

"Consumer rights organizations have long maintained that the 'crisis' of skyrocketing insurance rates for doctors and other policyholders would end when the insurance cycle stabilized, and that this would occur whether or not 'tort reform' laws were enacted," Joanne Doroshow, Americans for Insurance Rights co-founder and executive director of the Center for Justice & Democracy, said in the article.

Click here to read the Insurance Journal report.

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