Insurance Covarage, Crime Insurance

I read with interest GAO report 03-702 on the subject of medical malpractice insurance rates, published in June of 2003. It is an excellent example of how government sidesteps an issue by claiming a need for more data.Production of this report certainly cost taxpayers a significant amount of money. I am equally certain that some people eagerly awaited its release, hoping for an answer to the rising costs of medical malpractice insurance.

Sadly, the report provided nothing of the kind. The report did slide along the edges of common sense, but in the end gave up, obliquely asking for more government regulation to support the collection of even more data, thus delaying the obvious answers for a few more years.
Common Sense, And A Little Midnight Oil

From Washington, DC, the world looks like a very complex place, likely because legislators are enthralled with the delicate balance between special interest groups and their own re-election efforts. They study issues and amass piles of insurance  information, but either avoid meaningful analysis or reject it outright.

Over three decades in insurance, I have seen complexity: many good companies, a few very bad ones, massive rate increases and reductions, incredible profits, and staggering losses. In the final analysis, however, I find that insurance is a simple business. Many people spend their lives trying to make it complicated, but a little midnight oil burned studying the numbers—coupled with a little common sense—can make the basics quite clear