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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?
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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
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HPL BenchmarkingHPL Benchmarking
• Medical Malpractice Results Illustration of Ultimate Loss Ratios
For Illustrative Purposes Only: 2007 and 2008 Ultimate Loss Ratios
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HPL BenchmarkingHPL Benchmarking
• Medical Malpractice Results 2008 Loss & Expense Ratios
2008 Florida Medical Malpractice Financial Information
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HPL BenchmarkingHPL Benchmarking
Aon/ASHRM Hospital Professional Liability & Physician Liability 2009
Benchmark Analysis
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HPL BenchmarkingHPL Benchmarking
• Aon/ASHRM Benchmarking Study Methodology (# claims, # years, exposure) Trends Analyzed
• Never Events• Frequency• Severity• Hospitals• Physicians
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HPL BenchmarkingHPL Benchmarking
FREQUENCY
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HPL BenchmarkingHPL Benchmarking
• Aon/ASHRM HPL Benchmarking Study - Overall Frequency per Bed
2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis
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HPL BenchmarkingHPL Benchmarking
• Aon/ASHRM HPL Benchmarking Study - Frequency per 10,000 Births
2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis
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HPL BenchmarkingHPL Benchmarking
SEVERITY
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HPL BenchmarkingHPL Benchmarking
• Aon/ASHRM HPL Benchmarking Study – Overall Claim Severity Limited to $2M
2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis
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HPL BenchmarkingHPL Benchmarking
• Aon/ASHRM HPL Benchmarking Study – Closed Claim Analysis of Indemnity Payments
• HPL Avg. Paid Indemnity @ $2M NPDB Avg. Paid Indemnity Unlimited
2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis
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HPL BenchmarkingHPL Benchmarking
• Aon/ASHRM Benchmarking Study Findings -
For-Profit vs. Not-for-Profit
2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis
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HPL BenchmarkingHPL Benchmarking
• 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
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HPL BenchmarkingHPL Benchmarking
• Benchmarking Study FindingsBed Size Loss Cost per Bed @ $2M
2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis
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HPL BenchmarkingHPL Benchmarking
STATE REPORTS
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HPL BenchmarkingHPL Benchmarking
• Missouri 2008 Medical Malpractice Insurance Report
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HPL BenchmarkingHPL Benchmarking
• 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
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HPL BenchmarkingHPL Benchmarking
• 2008 Pennsylvania Medical Malpractice Case Filings: 2000 - 2008
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HPL BenchmarkingHPL Benchmarking
WHAT’S NEXT?
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HPL BenchmarkingHPL Benchmarking
• The Future of Benchmarking Underwriting/Brokerage Strategy? Rate Making? 50 States Collecting Data? More Facility-Closed Claim Studies? CMS Quality Indicators?
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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?