2010 medical professional liability symposium chicago, il ~ march 18 & 19, 2010 hpl...

2010 Medical Professional 2010 Medical Professional Liability SymposiumLiability Symposium

Chicago, IL ~ March 18 & 19, 2010

HPL Benchmarking: HPL Benchmarking: Do the Numbers Lie?Do the Numbers Lie?

HPL Benchmarking: Do HPL Benchmarking: Do the Numbers Lie?the Numbers Lie?

Moderator:

Robert Allen, Senior Vice President, Healthcare, Torus Insurance

Panelists:

Erik A. Johnson, FCAS, MAAA, Associate Director & Actuary, Aon Global Risk Consulting

Peter Schultheiss, FCAS, Division Actuary & Vice President, Zurich North America

Andrew Shapiro, JD, Senior Vice President, HealthPro, CNA

Paul Voller, Partner, Lloyd & Partners Limited

HPL BenchmarkingHPL Benchmarking

• Medical Malpractice Results Illustration of Ultimate Loss Ratios

For Illustrative Purposes Only: 2007 and 2008 Ultimate Loss Ratios


• Medical Malpractice Results 2008 Loss & Expense Ratios

2008 Florida Medical Malpractice Financial Information


Aon/ASHRM Hospital Professional Liability & Physician Liability 2009

Benchmark Analysis


• Aon/ASHRM Benchmarking Study Methodology (# claims, # years, exposure) Trends Analyzed

• Never Events• Frequency• Severity• Hospitals• Physicians


FREQUENCY


• Aon/ASHRM HPL Benchmarking Study - Overall Frequency per Bed

2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis


• Aon/ASHRM HPL Benchmarking Study - Frequency per 10,000 Births



SEVERITY


• Aon/ASHRM HPL Benchmarking Study – Overall Claim Severity Limited to $2M



• Aon/ASHRM HPL Benchmarking Study – Closed Claim Analysis of Indemnity Payments

• HPL Avg. Paid Indemnity @ $2M NPDB Avg. Paid Indemnity Unlimited



• Aon/ASHRM Benchmarking Study Findings -

For-Profit vs. Not-for-Profit



• CNA AGING SERVICES STUDY 8,000 Claims Across a 5-Year Period For-profits have higher frequency; gap is

closing Severity Gap is Non-Existent Facility and Cause of Loss Trends Most severe injuries are death, sexual

assault, amputation, and pressure ulcer


• Benchmarking Study FindingsBed Size Loss Cost per Bed @ $2M



STATE REPORTS


• Missouri 2008 Medical Malpractice Insurance Report


• 2008 Pennsylvania Court Statistics

Defense Verdicts $500,000 or Less TotalNo. of Cases %

No. of Cases %

No. of Cases

2004 235 78.4 29 9.8 299

2006 191 83.0 16 7.0 230

2008 131 81.4 6 3.7 161


• 2008 Pennsylvania Medical Malpractice Case Filings: 2000 - 2008


WHAT’S NEXT?


• The Future of Benchmarking Underwriting/Brokerage Strategy? Rate Making? 50 States Collecting Data? More Facility-Closed Claim Studies? CMS Quality Indicators?

2010 Medical Professional 2010 Medical Professional Liability SymposiumLiability Symposium

Chicago, IL ~ March 18 & 19, 2010

HPL Benchmarking: HPL Benchmarking: Do the Numbers Lie?Do the Numbers Lie?

2010 medical professional liability symposium chicago, il ~ march 18 & 19, 2010 hpl...

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