Analysis of signal game model as for defense strategies between insurer and doctor in medical liability insurance

There is conflict of interest in medical accidents disposal solution between insurer and doctor in medical liability insurance. This paper analyzes the two sides preferences on the different defense strategy. Through establishing of signal game model as for the medical insurance based on reputation effect, the author discuss the defense strategy of two sides. Under the hypothesis that does not consider the litigation cost, the author draw a decision it is difficult to produce separation equilibrium in the game. And the insurer will take a strategy either out-of-court settlement respectively or litigation according to the different doctor report.