JLT Re Current Healthcare Initiatives

19 April 2018

Legal

How can we analyze the legal environment of a single state or collection of states?

JLT Re’s by-state analysis of the MPL line includes a thorough analysis of relevant statutes, recent large verdicts and legal climate

ILFs

How can we gauge the adequacy of our increased limit factors (ILFs)?

JLT Re has conducted a review of publicly available rate filings from the last ten years and compiled a by-state index of various limits, with end user capabilities to analyze current factors

LOB

If we’ve identified a state or line of business we want to enter, how do we determine its profitability?

Our proprietary Strategic Technical Expansion Model (STEM) provides performance modeling to address the trade-offs between return and risk for growing portfolios in territory or class. JLT Re maintains an independent analysis of the NPDB to develop severity and frequency heat maps for the physician, nurse and dentist classes of business, on a by-state basis

Trends

How can we benchmark our operating trends to those of our peers?

JLT Re’s MPL Index includes 185 specialist MPL writers (90% or more of DPW reported is MPL); trends are reviewed quarterly and shared with clients to aid in analyzing performance relative to market peers

U.S. MARKET SHARE & TEAM

  • Represent 107 entities in the medical professional insurance and reinsurance market:

    MD

    34% of active
    U.S. MDs
    Oil Consulting

    PIAA members

    15 members
    of the PIAA
    Oil Consulting

    Medical Center

    18 U.S. Academic
    Medical Center Systems

    Hospital

    26 Children’s
    Hospitals
    Oil Consulting

    Risk

    A significant no. of captives & risk retention groups

  • Represent approx. 1/3rd of the estimated total U.S. ceded MPL premium
  • 85% of our clients have been with us six years or more; 60% over ten years
  • Dedicated team of brokers and technicians with extensive market experience

Strategic Technical Expansion Model (STEM)

STEM

Severity Heat Map - Physicians, 2014 - 2016

Heat map

JLT Re MPL index:* Medical professional liability market observations

2016 marked the FIRST REPORTED SURPLUS DECLINE in a decade51% Reported a combined ratio >100% (up from 38% in 2012)14 The average number of states MPL specialists currently write in (up from 10 in 2007)

*2016 results (185 entities, 90% or more of DPW reported is MPL)

FOR FURTHER INFORMATION, PLEASE CONTACT

Dan Koshiol | +1 612 444 7544 | dan.koshiol@jltre.com

Chip Ott | +1 612 444 7561 | chip.ott@jltre.com

Richard Jameson | +44 20 7886 5311 | richard.jameson@jltre.com

Simon Mills | +44 20 7886 5315 | simon.mills@jltre.com