Current Issues and Trends in Medical Malpractice . Casualty Loss Reserve Seminar September 10, 2007 Erik A. Johnson Aon Global Risk Consulting . “Medical Malpractice Trends and Issues”. Medical Malpractice Hospital Professional Liability Physician Professional Liability
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Casualty Loss Reserve Seminar
September 10, 2007
Erik A. Johnson
Aon Global Risk Consulting
Hospitals are very experienced with self insurance and large retentions – are sophisticated in pursuing ways to drive down retained costs:
Recent initiatives (chronologically)
Financial officers are sophisticated and wary of “a cycle” of reserve increases and decreases
Frequency of claims continues to climb. Countrywide, the number of claims incurred per 1,000 occupied beds has doubled from 5.6 in 1995 to 11.1 in accident year 2006.
Countrywide trends are driven by reductions in the average severity from a high of $261,000 in 1998 to $146,000 in accident year 2006.
The average amount spent to defend a GL/PL claim has increased more than sevenfold in the past seven years from approximately $7,400 to $52,800.