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Saturday, July 26, 2003Medical-malpractice insurance underwriters in Pennsylvania lost $18 million last year, according to a new analysis by the state Department of Insurance that appears to underscore industry claims that Pennsylvania's tort system is driving insurers out of the state. The analysis separated out the reserves that malpractice insurers sock away for future claims, a sum that the insurers typically count as losses. Even without those reserves in the loss column, 2002 was the fourth year in a row that insurance underwriters in Pennsylvania lost money, according to the analysis. Medical-malpractice insurance underwriters in Pennsylvania paid out $345.4 million in claims last year, about 31 percent less than the $499 million that insurers received in premiums from doctors, the department said. But while insurers earned $46.4 million in investment income, they also paid $136.9 million in legal costs and $81.1 million for taxes and other operating expenses. The insurers also put away $209.4 million in reserves for future claims. In the interim, insurers invest the money in bonds or cash equivalencies, but interest rates have dropped in recent years, diminishing the their potential for revenue from the securities market. There are only two companies in the state writing new policies at all, and one of them happens to be the same company I use. Maybe I've been too harsh on them. But, I'm going to be in trouble if the rates go up another $6,000 before the end of next month when I have to buy my own policy. posted by Sydney on 7/26/2003 02:47:00 PM 0 comments 0 Comments: |
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