7 Yellowstone Insurance Exchange RRG - June 2007 Fixed Income Diversification JuneSectorRatingYellowstone Insurance Exchange RRG - June 2007
8 Performance Summary – May 2007 *Inception date = 10/1/2005
9 Benchmarks – Average 15 Leading P&C Companies Assets to LiabilitiesYIE = $177.00Average = $164.37Surplus to Loss ReservesYIE = $149.41Average = $119.15
10 Benchmarks – Average 15 Leading P&C Companies Surplus to Net Premiums Written:YIE = $136.53Average = $112.73Top 15 – Allstate, American Family Mutual, American Home, CNA, Farmers, Federal Insurance Company, Government Employees Ins., Liberty Mutual, National Union Fire Ins. (AIG), Nationwide, Progressive, State Farm, State Farm Mutual, USAA and Zurich
11 Underwriting – 2007 Renewal Feedback From January SurveyExposure Definitions helped but slowed the processWe are moving the underwriting process in-houseDedicated to YellowstoneEarlier RenewalFaster Physician informationChanges you requestWill take effect 3rd quarter
12 Underwriting – 2008 Renewal Members Receive Hospital and Excess App by 09/01/07List of Insured'sCOI holdersList of physiciansList of Mid LevelMid Level & Physicians with TailPhysician Renewal app sent every other year – Not 2008 renewalMid Level renewal app every 3 years – Not 2008
13 Underwriting Pricing: For 2007 - On Target 2008 Study under developmentProjected rate increasePricing Dependent on Claims incurred and Reserve Study
14 Risk Management Goals for 2007 Increase visits to membership Establish a Video LibraryRegional Meetings to Improve Interaction with MembersAction Plan ComplianceImprove - Yellowstone Event System
18 Risk Management For 2008: Continue Action Plan Compliance Expand Yellowstone Event SystemDevelop Additional “Packets for Information”
19 Reported Incidents & Claims: We currently have 48 open Risk Management files and 140 closed Risk Management files.We currently have 17 open claims and 25 closed claim files.The breakdown of open claims is as follows:16 professional liability claims1 general liability claim.6 of these are in active litigation
21 Claims Larger Awards Payments in 2007 Trouble Spots $250K (MT) - 2006 Record Keeping – DocumentationsChain of CommandPrivilegesGet the right person for job / community
22 Claims Litigation Expense Increases as the Claim Matures Part of our Long – Term StrategyNecessary Expense given the Alternatives
23 CMC Insurance Agency was formed in 2007 to provide additional insurance products that support the core products offered by Yellowstone Insurance Exchange, RRG. The ultimate goal of CMC insurance is to provide one-stop shopping for insurance exchange and association members.
24 In creating CMC Insurance, the goals were to: Create stronger insurance products that generate overall cost savings for association membersProvide a wider product line and stabilize pricingIncrease retention of membership and generate additional revenue for association equity holdersControl the quality of service partners
25 The agency brings together considerable insurance industry experience to provide a complete range of insurance products designed to complement the core products of Yellowstone Insurance Exchange, RRG.Product focusEmployment Practices LiabilityPhysician & ER Physician LiabilityDirectors & Officers Liability
26 The agency is focused on the specialized insurance and risk management needs of hospitals and health care related organizations.The agency has a firm commitment to provide the best possible service utilizing a range of insurance products developed for the health care industry from leading insurance organizations here in the United States and in London.
27 YIE - Key Success Factors Strong member capitalizationLong term commitmentStable growth - ControlSmall to Midsize marketsNo “Drift” from core competencyPast insurance cycles
28 YIE Goals: Lower the overall exposure and market swings Generate cost savings for your hospital in dividendsInstall quality Risk Management ProgramsExperience based underwriting critical to success
29 Yellowstone Insurance Exchange, RRG CommunicationsFormsContactsApplicationsNewslettersCompany Information
Your consent to our cookies if you continue to use this website.