The medical-malpractice insurance line, which has performeddismally over the past few years, will become profitable again in2006, a new study predicts.
The analysis by Conning Research and Consulting Inc. titled"Medical Malpractice: New Opportunities Emerging? Or the Eye of theHurricane?" identified several favorable developments for itsoptimistic forecast. They include: declining frequency, risinginvestment income, and the progress in state reforms, particularlyin states designated by the American Medical Association as "crisisstates."
"While there are certainly reasons for concern, especially long-term, overall the news is good," commented Stephan Christiansen,director of research at Hartford, Conn.-based Conning Research& Consulting.
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