The data contained in these Statements demonstrate that the premise on which the insurance industry based its “tort reform” campaign of the last several years–that malpractice claims payments have been increasing–is false. Specifically, the 2006 Annual Statements reveal that the amount the leading malpractice insurers project they will pay out in claims in the future has declined; that the amount they have actually paid out in claims has declined; and that their surplus–the extra cushion they have accumulated over and above the amount they have set aside to pay claims in the future–has increased to an all time high. In addition, the 2006 Annual Statements reveal that notwithstanding the record surplus and profits of these carriers, they have generally declined to issue any dividends to their policyholders.

No Basis for High Insurance Rates – pdf