Tort Policy Working Group

There is little evidence that insurance companies underprice premiums when real interest rates are high only to hit consumers hard once interest rates drop (Tort Policy Working Group 1987). The collusion needed to coordinate such behavior appears impossible. The 20 largest general liability insurers controlled only 66 percent of fhe market in 1987 (Harrington 1988, 44). If some companies collude fo raise premiums above fhe break-even level, ofher firms can raise new capital and enter the market. ... 

Tort Policy Working Group. 1987. An Update on the Liability Crisis. Washington U.S. Department of Justice. 

U.S. Department of Justice, Report of the Tort Policy Working Group on the Causes, Extent and Policy Implications of the Current Crisis in Insurance Availability and Affordability (Washington, DC U.S. Government Printing Office, 1986),... 

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