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The effect of 1980s tort reform legislation on general liability and medical malpractice insurance
Authors:W. Kip Viscusi  Richard J. Zeckhauser  Patricia Born  Glenn Blackmon
Affiliation:1. Department of Economics, Duke University, 27708, Durham, NC
2. Kennedy School of Government, Harvard University, 02138, Cambridge, MA
3. Delta Pacific, 98501, Olympia, WA
Abstract:A large number of states adopted tort reforms in the mid-1980s to limit the dramatic surge in insurance losses and premiums. Evidence based on liability insurance data by state indicates that these reforms substantially influenced general liability insurance. The levels of losses, premiums, and loss ratios (a measure of insurance profitability) all reflected the impact of the reforms. The large-scale reform efforts in 1986 were particularly influential. Medical malpractice insurance was much less sensitive to the reform efforts.
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