Equity and accuracy in medical malpractice insurance pricing.

Journal Article (Journal Article)

This study examines alternative classification approaches for setting medical malpractice insurance premiums. Insurers generally form risk classification categories on factors other than the physician's own loss experience. Our analysis of such classification approaches indicates different but no more categories than now used. An actuarially-fair premium-setting scheme based on the frequency and severity of the individual physician's losses would substantially penalize adverse experience. Alternatively, premiums could be set for groups of physicians, such as hospital medical staffs. Our simulations suggest that even staffs at rather small hospitals may be large enough to be experience-rated.

Full Text

Duke Authors

Cited Authors

  • Sloan, FA; Hassan, M

Published Date

  • November 1990

Published In

Volume / Issue

  • 9 / 3

Start / End Page

  • 289 - 319

PubMed ID

  • 10107848

Electronic International Standard Serial Number (EISSN)

  • 1879-1646

International Standard Serial Number (ISSN)

  • 0167-6296

Digital Object Identifier (DOI)

  • 10.1016/0167-6296(90)90048-8


  • eng