The American Law and Economics Association conference 2025 at NYU
June 2025
Medical Profesionnal Liability, Tort Reform, and AI Predictive Analytics at New York University.
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We attended, among 200 amazing participants and 50 panels, the recent American Law and Economics Association (ALEA) conference at NYU, under the presidency of Prof. Rick Brooks (NYU). Many panels focused on AI and some even on AI and Medical Professional Liability (MPL)!
We happily listened to Prof. Bernard Black and Francesco Maria Rossi (Northwester Law), who shared research on MPL litigation, tort reform, and predictive modeling in insurance.
Here are some takeaways from those panels:
🔹Damage caps don't lower premiums: they reduce payouts, increasing insurer profits. Other tort reforms may benefit public health more.
🔹Plaintiff incentives matter: caps change attorney case selection and volume, making it more challenging for many claimants to find good legal representation.
🔹Data transparency is declining: Texas closed claims database (TCCD) is gone, and no comprehensive NPDB exists for hospitals or physician specialties. This is detrimental to battling aberrant verdicts.
🔹 Prof. Black and his team built predictive models that outperform insurer reserves—something we’ve long advocated for!