Is the medical malpractice outlook really improving?

ABSTRACT

After climbing significantly over the past decade, medical liability insurance rates appear to be moderating as a result of declining frequency and severity of claims from late 1986 through 1988. A "softer" insurance climate with greater underwriting capacity also aided this process. However, experts believe that the moderation of rate increases may be short-lived because of the cyclical nature of the insurance marketplace and the insurer's difficulty in estimating claims and losses.