The medical-malpractice insurance line, which has performed dismally over the past few years, will become profitable again in 2006, a new study predicts.
The analysis by Conning Research and Consulting Inc. titled "Medical Malpractice: New Opportunities Emerging? Or the Eye of the Hurricane?" identified several favorable developments for its optimistic forecast. They include: declining frequency, rising investment income, and the progress in state reforms, particularly in states designated by the American Medical Association as "crisis states."
"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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