It is true that medical malpractice insurance companies are making a good margin right now in California and around the country. However, the commissioner is not telling the entire story. During hard markets when there are a lot of claims the insurance companies tend to lose a lot of money. Right now we are in a soft market, meaning fewer claims.(see http://www.equotemd.com/blog ) During periods of soft markets is when most insurance companies build surplus so that they have enough money next time the hard market comes around. Departments of insurance don’t seem to want the companies to make a lot of money but they also don’t want them to go out of business. If the hard market comes roaring back the commissioner will be thankful that the companies have a lot of surplus on hand. The Doctors Company also has a retirement plan called The Tribute Plan that some of the premium goes towards for each doctor.
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It is true that medical malpractice insurance companies are making a good margin right now in California and around the country. However, the commissioner is not telling the entire story. During hard markets when there are a lot of claims the insurance companies tend to lose a lot of money. Right now we are in a soft market, meaning fewer claims.(see http://www.equotemd.com/blog ) During periods of soft markets is when most insurance companies build surplus so that they have enough money next time the hard market comes around. Departments of insurance don’t seem to want the companies to make a lot of money but they also don’t want them to go out of business. If the hard market comes roaring back the commissioner will be thankful that the companies have a lot of surplus on hand. The Doctors Company also has a retirement plan called The Tribute Plan that some of the premium goes towards for each doctor.
Razia
How has the economy complicated the medmal claim reserving process for self-insured hospitals? A primer for CFOs http://www.healthcaretownhall.com/?p=3470