Yes and no...
While the article talks about national "trends", it is important to realize that there is a movement underfoot to limit damage awards...so saying that nationally the rate of premium increases is "slowing" may be due to the fact that a number of states have already enacted malpractice reform.
In my mind, from the insurers I've talked to, limiting awards for pain and suffering introduces more surety to insurance companies about potential payouts...and that makes the market more predictable. A more predictable market will in all likelihood bring back some previous malpractice providers that stopped writing coverage because the profit margins did not support the risk they were assuming with no cap to potential damages. An increase in malpractice writers WILL decrease rates for physicians simply by increasing the competition among the various carriers.
This will not however solve the entire problem, since insurance companies expect a certain return on their risk based assets, and if the investment markets still offer sub-par returns (which will be determined by the insurers), someone is going to pay to make up hte difference betweeen what they expect and what they receive on their investment of premiums.
"limiting awards for pain and suffering introduces more surety to insurance companies about potential payouts...and that makes the market more predictable. "
That makes a lot of sense. Predictability seems to be a major asset when it comes to insurance.
Thanks again.