Disciplined pricing: an elusive target

This article was originally published by the PIAA in Physician Insurer magazine, third quarter 2007, and is reprinted here with permission.

The medical professional liability insurance industry has experienced a great deal of turbulence during the past 30 years. Much of this financial rollercoaster can be attributed to volatility in the underlying frequency and severity components of the loss cost, which the actuaries would argue confounded the predictability of the models.