Yellowstone Insurance Exchange, RRG Annual Subscribers Meeting Annual Update July 10 th, 2007 Coeur...
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Transcript of Yellowstone Insurance Exchange, RRG Annual Subscribers Meeting Annual Update July 10 th, 2007 Coeur...
Yellowstone Insurance Exchange, RRG
Annual Subscribers MeetingAnnual UpdateJuly 10th, 2007Coeur d’Alene, Idaho
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
Agenda
10:00am – 12:00pmYellowstone Insurance Exchange, RRG
Annual Meeting of SubscribersSAC Meeting
12:00 pm Box Lunch 1:00 pm Golf at Resort Course 6:30 pm Reception and Dinner (Idaho
Room)
Financials
Revenue:2005 $2.62m
2006 $3.82m2007 (May) $3.92m
Net Income:2005 $88k
2006 $182k2007 (May) $775.6k
Financials
Assets 2005 $ 11.8m 2006 $16.7m 2007 (May) $26.0m
Subscriber Savings Account Distribution 2005 $107k 2006 $189k
Three Largest Liabilities 2005 $7.7m 2006 $11.6m 2007 (May) $15.5m
losses and loss adjustment expense, reinsurance premium payable and accrued expenses
Asset Class 6/14/2007Money Market 557,238$ Fixed Income 4,825,818$ Sub Total 5,383,056$ Accrued Income 48,924$ Total 5,431,980$
Asset Allocation
Yellowstone Insurance Exchange RRG - June 2007
Sector Rating
Fixed Income Diversification June
Asset Class 3 Month YTD 2007 1 Year HTD*Cash Equivalents 1.24% 2.04% 4.98% 4.62%Fixed Income 1.05% 2.01% 4.99% 4.00%Total Portfolio 1.10% 2.07% 5.17% 4.44%
Comparative Indices3-Month Treasury Bill 1.27% 2.08% 5.05% 4.69%Lehman 1-5 Yr Govt Index 0.47% 1.60% 5.18% 3.76%
*Inception date = 10/1/2005
Performance Summary – May 2007
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
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
Benchmarks – Average 15 Leading P&C Companies
Underwriting – 2007 Renewal
Feedback From January SurveyExposure 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 - 2007
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
Underwriting
Pricing: For 2007 - On Target 2008 Study under development
Projected rate increase Pricing Dependent on Claims incurred and
Reserve Study
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
Risk Management
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%)
Risk Management
Risk Management
For 2008: Continue Action Plan Compliance Expand Yellowstone Event System Develop Additional “Packets for
Information”
Claims
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
Claims
17 Open Claims Montana - 12 Idaho – 4 Wyoming – 0 NM - 1
2006 - 22 open2005 - 10 open
25 Closed Claims Montana - 16 Idaho – 5 Wyoming – 4 NM - 0
2006 Closed Claims -4 Montana - 3 Wyoming - 1
Claims
Larger Awards $250K (MT) - 2006 $210K (MT) - 2006
Payments in 2007
Trouble Spots Record Keeping – Documentations
Chain of Command Privileges
Get the right person for job / community
Claims
Litigation Expense Increases as the Claim Matures Part of our Long – Term Strategy Necessary Expense given the
Alternatives
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.
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
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
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.
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
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
Yellowstone Insurance Exchange, RRG
Communications 877-580-1100 www.yierrg.com
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