The Wall Street Journal on Wednesday examined the increased popularity of captive insurers, cooperative insurance pools and risk-retention groups as less-expensive alternatives to traditional medical malpractice insurance. According to the Journal, data indicate that at least 40% of providers have alternative malpractice insurance -- a market that "took off as some traditional insurers collapsed after suffering losses from mounting claims" or "pulled out of the business line." For example, providers can obtain malpractice insurance through captive insurers, which provide coverage only for the groups that establish them. Physicians and hospitals also can establish cooperative insurance pools or risk-retention groups to provide malpractice insurance for themselves and other providers. In many cases, premiums for alternative malpractice insurance are lower than those for traditional coverage. However, whether the "alternative vehicles will be able to keep down premium increases remains to be seen," and their "lack of experience could be a disadvantage because they can't be sure how much to charge for coverage ... until they get a few more years' worth of claims to evaluate" (Anand, Wall Street Journal, 8/17).

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