Missouri medical malpractice insurers recorded a positive underwriting result for the second consecutive year last year, according to a new insurance department report.

In addition, the highest recorded numbers of new claims were filed, according to findings in the 2005 Medical Malpractice Insurance Report released earlier this month by the Missouri Department of Insurance, Financial Institutions & Professional Registration.

The high claims level may be related to a legislative change the report said.

Although the findings of this report represent a majority of the medical malpractice insurance market, the department estimates that between 15 and 20 percent of all medical malpractice claims are not reported.

However, the report noted the reporting situation may be changing since new medical malpractice reform legislation will give the department greater oversight of self-insureds and surplus lines. These entities will now be required to report claims data in the same manner as other malpractice insurers.

The report also said newly reported claims for all practitioners are the highest recorded with the department at 2,425 new claims.

The timing of the 2005 claims suggests that the large increase is related to the implementation of civil litigation reform legislation that went into effect in August 2005. “Most claims appear to have been filed before this date to be eligible for the old non-economic damages cap,” the report stated.

The old cap was $579,000 which was annually adjusted for inflation. But with new legislation, the cap changed to $350,000 with no adjustment for inflation.

“These reforms will give the department better tools to monitor the stability of the medical malpractice insurance market in Missouri,” said Insurance Director Dale Finke. “In the coming years, we will learn more about the effects of these reforms.”

Other highlights of the 2005 Medical Malpractice Report:

oThe average award per paid claim increased slightly in 2005 to $253,304, following sharp increases in the past three years with average payments totaling $207,440 in 2002, $211,446 in 2003 and $252,043 in 2004.

oThe most prevalent of alleged medical errors leading to a malpractice award were error/improper performance (46.9 percent), and failure to treat (21.1 percent).

oAfter increasing for three consecutive years, the number of closed claims reported declined from 1,844 to 1,699.

Special Reports /

Missouri Finds Malpractice Insurers In The Black

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