Climate Change Project

Table of Contents



<< >> Up Title Contents


From a physician's point of view, the most contentious issue in malpractice insurance is rate setting. Physicians want affordable insurance; insurance companies want maximum income. Income is the product of the number of insureds and the premiums that each pays. As premiums increase, there are physicians who can no longer afford insurance. (Some of these leave practice, but the vast majority take a salaried job and continue to practice medicine.)

The important issue for the insurance company is not whether some physicians are now priced out of the market but whether the total dollars paid by the remaining insureds is higher at the new rate. Even if a company's nominal rates are temporarily higher than those of its competitors, the cost of tail coverage and contributions to reserves limit the ability of insureds to move to a competing insurer.

<< >> Up Title Contents

Law and the Physician Homepage
Copyright 1993 - NOT UPDATED

The Climate Change and Public Health Law Site
The Best on the WWW Since 1995!
Copyright as to non-public domain materials
See DR-KATE.COM for home hurricane and disaster preparation
See WWW.EPR-ART.COM for photography of southern Louisiana and Hurricane Katrina
Professor Edward P. Richards, III, JD, MPH - Webmaster

Provide Website Feedback - https://www.lsu.edu/feedback
Privacy Statement - https://www.lsu.edu/privacy
Accessibility Statement - https://www.lsu.edu/accessibility