Medical Malpractice Insurer Request Rate Decrease

Hartford, CT — On May, 2007, The Insurance Department received a medical malpractice insurance rate filing from MedPro. Unlike the filings we’ve seen from companies in recent years, MedPro is asking the Department to approve a 24% rate decrease.

MedPro has been operating in Connecticut since 1997. In 2005, GE Insurance Solutions sold MedPro to Berkshire Halthaway, which is more willing to accept properly underwritten insurance risk.

Insurance Commissioner Thomas R. Sullivan stated, "This is a positive step for the Connecticut medical malpractice insurance marketplace. Any time competition can be leveraged, consumers benefit."

In accordance with state law, the Department will review the filing and make its decision. However, based on information gathered by the Department so far, it appears that MedPro has the financial and actuarial analysis to support their request.

Commissioner Sullivan cautions, however, that "while this is clearly good news for doctors and hospitals, the medical malpractice insurance problem is not over. Legal expenses, reinsurance costs, and increasing indemnity payments, continue to make medical malpractice insurance a particularly risky line of business. Nonetheless, this is good news and a positive first step towards creating an environment that fosters competition."