Nationwide News

U.S. Medical Malpractice Hindered by Loss Severity

A continued loss in severity stemming from litigation is expected for the U. S. medical malpractice industry, according to a Standard & Poor’s Ratings Services report published today. Dealing with the rising severity, underwriters plan to reduce policy limits and increase their selectivity in insuring parties. The harsher standards and lower policy limits will improve the risk pool, lower trends in severity,and increase predictability in pricing, according to the Standard & Poor report. With the passage of effective tort reform, the medical malpractice companies may be tempted to compete on price and policy design.


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