Compared to five states with the largest medical malpractice markets, Florida ranks highest – at 29 percent – when measuring the combined non-loss costs to earned premium ratio, according to a new state report.
Florida ranks fourth highest among the compared states in two categories: losses to earned premium ratio at 40.2 percent; and combined loss and defense cost to earned premium basis ratio at 61.7 percent.
The report showed that the loss experienced in Florida is competitive when compared to the other large states. The report further illustrates that rate increases in 2005 were less than in 2004.
The Florida Office of Insurance Regulation is required to annually issue a summary and analysis on the state of medical malpractice insurance. The report published in November satisfied state law and provided statistics comparing Florida to Texas, California, New York, Illinois and Pennsylvania.
Fifteen companies were required to achieve an 80 percent market threshold for analysis required by statute, which is 25 percent greater than the 12 companies needed in 2004. For the 15 firms comprising the 80 percent, Florida is one of their top five markets. The report showed that the average return on surplus for this segment was 13.2 percent in 2005, up from 9.6 percent in 2004 and -12 percent in 2003.
The report can be viewed online at http://www.floir.com/pdf/2006Medicalmalpracticereport.pdf.
Source: www.floir.com
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