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Equity and accuracy in medical malpractice insurance pricing.

Authors :
Sloan FA
Hassan M
Source :
Journal of health economics [J Health Econ] 1990 Nov; Vol. 9 (3), pp. 289-319.
Publication Year :
1990

Abstract

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.

Details

Language :
English
ISSN :
0167-6296
Volume :
9
Issue :
3
Database :
MEDLINE
Journal :
Journal of health economics
Publication Type :
Academic Journal
Accession number :
10107848
Full Text :
https://doi.org/10.1016/0167-6296(90)90048-8