How can anyone make any sort of conclusions based on only paid losses? Medical malpractice claims take years to settle. Until then insurers are required to set up case reserves, not to mention IBNR reserves. These are all on the balance sheet as liabilities.
Not only that, premium increases come from exposure increases–increases in bed counts, physicians, etc.
When you combine the fact that premiums increase for varieties of reasons, and that these people who compile this study purposely exclude reserves, anyone with a basic insurance knowledge should be able to reject it as useless.
When will Angoff and his ilk realize that one must compare apples with apples?
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How can anyone make any sort of conclusions based on only paid losses? Medical malpractice claims take years to settle. Until then insurers are required to set up case reserves, not to mention IBNR reserves. These are all on the balance sheet as liabilities.
Not only that, premium increases come from exposure increases–increases in bed counts, physicians, etc.
When you combine the fact that premiums increase for varieties of reasons, and that these people who compile this study purposely exclude reserves, anyone with a basic insurance knowledge should be able to reject it as useless.
When will Angoff and his ilk realize that one must compare apples with apples?