Rating Claims-Made Insurance Policies [Discussion]

The introduction of the claims-made policy as a vehicle for providing Medical Professional Liability insurance coverage in the mid-1970's clearly marked a turning point in the nature of the insurance market for this volatile line of business. Since the time when the St. Paul Fire and Marine converted their entire Medical Liability book of business from an occurrence form to a claims-made form in 1975, a significant portion of the market, especially the so-called "medical mutals," has also shifted to providing coverage on this basis. At long last we have a comprehensive, actuarial perspective on the various advantages of this form of coverage and a technical discussion of one approach that can be used to price it. Messrs. Marker and Mohl have filled a significant gap in the actuarial literature in this regard. Claims-Made