"Crises" in medical malpractice insurance: Evidence of excessive price-cutting in the preceding soft market

Journal of Banking and Finance

Volumn 32, Issue 1, 2008, Pages 157-169

  Harrington, Scott E ^a   Danzon, Patricia M ^a   Epstein, Andrew J ^b  

^a UNIVERSITY OF PENNSYLVANIA   (United States)

^b YALE UNIVERSITY   (United States)

Author keywords

Medical malpractice insurance; Underpricing; Underwriting cycles

Indexed keywords

EID: 37549053981     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2007.09.009     Document Type: Article

References (26)

1. Best Company, A.M., 1991. Best's Insolvency Study, A.M. Best Co., Oldwick, NJ.
2. Baicker, Katherine, Chandra, Amitabh, 2004. The Effect of Malpractice Liability on the Delivery of Health Care, NBER Working Paper 10709, August.
3. Born P., and Viscusi W.K. Insurance market responses to the 1980s liability reforms: An analysis of firm-level data. Journal of Risk and Insurance 61 (1994) 192-218
4. Cagle J., and Harrington S. Insurance supply with capacity constraints and endogenous insolvency risk. Journal of Risk and Uncertainty 11 (1995) 219-232
5. Cummins J.D., and Danzon P.M. Price, financial quality, and capital flows in insurance markets. Journal of Financial Intermediation 6 (1997) 3-38
6. Danzon P.M. Tort reform and the role of government in private insurance markets. Journal of Legal Studies 13 (1984) 517-549
7. Danzon P.M., Epstein A., and Johnson S. The crisis in medical malpractice insurance. In: Litan R., and Herring R. (Eds). Brookings-Wharton Papers on Financial Services 2004 (2004), Brookings Institution Press, Washington, DC
8. Doherty N.A., and Dionne G. Insurance with undiversifiable risk: contract structure and organizational form of insurance firms. Journal of Risk and Uncertainty 6 (1993) 187-203
9. Dranove D., and Gron A. Effects of the malpractice crisis on access to and incidence of high-risk procedures: Evidence from Florida. Health Affairs 24 (2005) 802-810
10. Epermanis K., and Harrington S. Market discipline in property/casualty insurance: Evidence from premium growth surrounding changes in financial strength ratings. Journal of Money, Credit, and Banking 38 (2006) 1515-1544
11. Gron, Anne, 1989. Property-Casualty Insurance Cycles, Capacity Constraints, and Empirical Results, Ph.D. dissertation, Department of Economics, Massachusetts Institute of Technology, Cambridge, MA.
12. Gron A. Evidence of capacity constraints in insurance markets. Journal of Law and Economics 37 (1994) 349-377
13. Gron A., and Andrew W. Risk overhang and market behavior. Journal of Business 74 (2001) 591-612
14. Harrington S.E. Prices and profits in the liability insurance market. In: Litan R., and Winston C. (Eds). Liability: Perspectives and Policy (1988), The Brookings Institution, Washington, DC
15. Harrington S.E. Tort liability, insurance rates, and the insurance cycle. In: Litan R., and Herring R. (Eds). Brookings-Wharton Papers on Financial Services 2004 (2004), Brookings Institution Press, Washington, DC
16. Harrington S.E., and Danzon P. Price-cutting in liability insurance markets. Journal of Business 67 (1994) 511-538
17. Harrington S.E., and Litan R.E. Causes of the liability insurance crisis. Science 239 (1988) 737-741
18. Harrington S.E., and Niehaus G. Cycles and volatility. In: Dionne G. (Ed). The Handbook of Insurance (2001), Kluwer, Boston, Mass
19. McGee R. The cycle in property-casualty insurance. Federal Reserve Bank Of New York Quarterly Review. Autumn (1986) 22-30
20. US General Accounting Office, 2003a. Malpractice Insurance: Multiple Factors Have Contributed to Increased Premium Rates, 03-702, June.
21. US General Accounting Office, 2003b. Malpractice: Implications of Rising Premiums on Access to Health Care, 03-836, August.
22. Viscusi W.K., and Born P. Damages caps, insurability, and the performance of medical malpractice insurance. Journal of Risk and Insurance 72 (2005) 23-43
23. Winter R.A. The liability crisis and the dynamics of competitive insurance markets. Yale Journal On Regulation 5 (1988) 455-499
24. Winter R.A. The liability insurance market. Journal of Economic Perspectives 5 (1991) 115-136
25. Winter R.A. The dynamics of competitive insurance markets. Journal Of Financial Intermediation 3 (1994) 379-415
26. Yu T., and Harrington S.E. Do underwriting margins have unit roots?. Journal of Risk and Insurance 70 (2003) 715-734