Pitfalls in Evaluating Proposed Tort Reforms

Tverberg, Gail E.

Non-Refereed Paper/Article
Casualty Actuarial Society Forum Casualty Actuarial Society - Arlington, Virginia
2005: Winter
152-170
http://www.casact.org/pubs/forum/05wforum/05wf152.pdf

Abstract

Motivation: To provide the ratemaking actuary with a description of typical medical malpractice tort reforms and issues involved in pricing these reforms.

Method: The paper draws primarily on the author’s own experience with reform legislation.

Results: Ten pitfalls in evaluating reforms are described.

Conclusions: For educating non-actuaries, the most important is Pitfall #8, relating to the difference between indemnity savings and the expected change to current rates. Actuaries pricing malpractice tort reforms should be aware of the issues underlying all ten pitfalls. Some of these issues may also be relevant to pricing reforms for other lines of insurance.

Keywords: Ratemaking; medical malpractice; tort reform.

Related Documents:

• 2005 Ratemaking Seminar Handout

Taxonomy Classifications

• Actuarial Applications and Methodologies > Regulation and Law > Insurance Law
• Business Areas > Professional Liability > Medical Malpractice - Claims-Made
• Business Areas > Professional Liability > Medical Malpractice -Occurence
• Actuarial Applications and Methodologies > Ratemaking

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