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A new study by A.M. Best affirms what captive domicile regulators are saying, that the alternative risk-transfer market continues to flourish, despite the current soft insurance market–especially in the captive-heavy medical malpractice sector.

In its special report, released in late July–”Medical Malpractice Leads Captives’ Premium”–Best found that falling med mal prices led to a 15 percent drop in net premiums written between 2006 and 2007 for a composite of captive insurers, but that captives overall benefited from favorable underwriting trends.

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