American Physicians Insurance Exchange, Texas' first physician-governed medical malpractice carrier, will reduce medical malpractice insurance premium rates for each of its insured physicians across the state. The announced rate cuts average 13 percent, which represents a reduction of more than $9 million in premiums.

This is the second rate cut announced by the company in six months.

In February, an estimated 2,200 physicians received average rate cuts of 5 percent, which saved those doctors about $3.5 million on premiums. The new rate reductions are in addition to the previous cuts.

Exchange President Maury Magids attributes the latest rate cuts to conservative underwriting and the Texas Legislature's 2003 tort reform measures, which capped non-economic medical malpractice damages at $250,000.

"We have been cautiously optimistic about the impact of tort reform on the claims environment and now have sufficient data showing significant effects from the tort reform effort," Magids says.

Magids says medical specialists most affected by the tort reform measures, such as obstetricians, "will see an average rate cut of 5 percent, but our rates for these physicians were already some of the lowest in the state.

“Further, we are now offering extremely competitive rates for the non-surgical classes of physicians. We can absolutely attribute these developments to a more stable and healthy market,” Magids said.