Posted On: January 3, 2006, 3:15 pm CST

Posted By: Rob Pennell

I have personally reviewed this issue in regard to the figures recently reported in my own state of Missouri where the insurers aggregate amount claimed for losses went from $67M to $166M in the course of one year at the same time that they carriers were looking to press for tort reform. There is little question but that the insurers inflate these figures at least at some level. And in fairness, it only makes sense that they do to a certain extent to ensure that the amount of reserves set aside to cover their losses are adequate. It would be unsatisfactory for them to routinely have inadequate funds set aside to cover their losses and result in companies folding and claims going unpaid. The question is when are they overstating things too much just for their own financial benefit. In light of filings with the Texas Dept of Insurance by TX's largest med mal carrier that the full extent of savings its actuarials estimate from the tort reform measures it pushed so hard to get was 1% from the damage caps and 1.5% from the ability to make payments over time I think it is time that we all came to recognize that this is not about passing laws that will make a difference in premiums nor about unfair jury verdicts but rather about an overall effort to sway jurors into believing that if they award money to an injured party that they will risk denying themselves and their families access to medical care. It is the debate that the carriers want most - not any particular outcome from a legislative standpoint.