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Tuesday, November 14, 2006posted by Sydney on 11/14/2006 08:37:00 AM 2 comments 2 Comments:It probably has more to do with rising interest rates than tort reform. (Insurance companies make their money by investing premiums in things like government bonds, which are highly dependent on the fed funds rate.) By 9:12 AM , at
Ben you are correct that the rising market is helping, but I don't think it explains much of the difference in rate increases over the past five years vs this year. For the rising-interest-rate arithmetic to fully explain what happened, the amount of premium invested would have to be something like 6 or 7 times the annual premium. That's not likely. By 3:14 PM , at |
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