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Yellowstone Insurance Exchange, RRG

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Presentation on theme: "Yellowstone Insurance Exchange, RRG"— Presentation transcript:

1 Yellowstone Insurance Exchange, RRG
Annual Subscribers Meeting Annual Update July 10th, 2007 Coeur d’Alene, Idaho

2 Agenda Welcome 8:45am – 9:45am Risk Management Presentations
Managing in a Crisis S. Yockey, Gritman Medical Center National Trends in the Marketplace Stephen Hill, Aspen Re, London, UK

3 Agenda 10:00am – 12:00pm 12:00 pm Box Lunch
Yellowstone Insurance Exchange, RRG Annual Meeting of Subscribers SAC Meeting 12:00 pm Box Lunch 1:00 pm Golf at Resort Course 6:30 pm Reception and Dinner (Idaho Room)

4 Financials Revenue: Net Income: 2005 $2.62m 2006 $3.82m
2007 (May) $3.92m Net Income: 2005 $88k 2006 $182k 2007 (May) $775.6k

5 Financials Assets Subscriber Savings Account Distribution
2005 $ 11.8m 2006 $16.7m 2007 (May) $26.0m Subscriber Savings Account Distribution $107k $189k Three Largest Liabilities 2005 $7.7m 2006 $11.6m 2007 (May) $15.5m losses and loss adjustment expense, reinsurance premium payable and accrued expenses

6 Asset Allocation

7 Yellowstone Insurance Exchange RRG - June 2007
Fixed Income Diversification June Sector Rating Yellowstone 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 Liabilities YIE = $177.00 Average = $164.37 Surplus to Loss Reserves YIE = $149.41 Average = $119.15

10 Benchmarks – Average 15 Leading P&C Companies
Surplus to Net Premiums Written: YIE = $136.53 Average = $112.73 Top 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 Survey Exposure Definitions helped but slowed the process We are moving the underwriting process in-house Dedicated to Yellowstone Earlier Renewal Faster Physician information Changes you request Will take effect 3rd quarter

12 Underwriting – 2008 Renewal
Members Receive Hospital and Excess App by 09/01/07 List of Insured's COI holders List of physicians List of Mid Level Mid Level & Physicians with Tail Physician Renewal app sent every other year – Not 2008 renewal Mid Level renewal app every 3 years – Not 2008

13 Underwriting Pricing: For 2007 - On Target
2008 Study under development Projected rate increase Pricing Dependent on Claims incurred and Reserve Study

14 Risk Management Goals for 2007 Increase visits to membership
Establish a Video Library Regional Meetings to Improve Interaction with Members Action Plan Compliance Improve - Yellowstone Event System

15 Risk Management

16 Total 2006 Occurrences (6/19/07)
Risk Management Total 2006 Occurrences (6/19/07) Total Occurrence Entered for 2006 totaled: 5,645 Top Five Issues: FALLS (1,398 – 25%) MEDICATION (1,397 – 25%) OTHER EVENTS (1,332 – 24%) BEHAVIOR (811 – 14.3%) TREATMENT/PROCEDURE (267– 5%)

17 Risk Management

18 Risk Management For 2008: Continue Action Plan Compliance
Expand Yellowstone Event System Develop 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 claims 1 general liability claim. 6 of these are in active litigation

20 Claims 17 Open Claims 2006 - 22 open 2005 - 10 open 25 Closed Claims
Montana Idaho – 4 Wyoming – 0 NM - 1 open open 25 Closed Claims Montana Idaho – 5 Wyoming – 4 NM - 0 2006 Closed Claims -4 Montana - 3 Wyoming - 1

21 Claims Larger Awards Payments in 2007 Trouble Spots $250K (MT) - 2006
Record Keeping – Documentations Chain of Command Privileges Get the right person for job / community

22 Claims Litigation Expense Increases as the Claim Matures
Part of our Long – Term Strategy Necessary 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 members Provide a wider product line and stabilize pricing Increase retention of membership and generate additional revenue for association equity holders Control 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 focus Employment Practices Liability Physician & ER Physician Liability Directors & 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 capitalization Long term commitment Stable growth - Control Small to Midsize markets No “Drift” from core competency Past insurance cycles

28 YIE Goals: Lower the overall exposure and market swings
Generate cost savings for your hospital in dividends Install quality Risk Management Programs Experience based underwriting critical to success

29 Yellowstone Insurance Exchange, RRG
Communications Forms Contacts Applications Newsletters Company Information

30 Yellowstone Insurance Exchange, RRG

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