Day on Torts
Today’s Washington Post has this article about another study of the medical malpractice insurance industry.
The study shows that insurer’s overestimated their losses from 1986 until 1994 by almost 50%.
Insurance companies are permitted to estimate losses today on claims that will be paid in the future. This study shows that the companies tend to overestimate what they will pay in the future. Companies often use these estimates to support claims for restrictions on the rights of malpractice victims.