1. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM Insurance Operations Update HIROC Risk Management Conference April 28, 2014 Heather Brown, Vice President 1

2. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM Funding requirements for 2013 and 2014 renewals were the lowest in over 10 years Reinsurance – HIROC retention increased $10 million distribution of surplus in 2013 - largest amount returned to subscribers in more than a decade Number of subscribers continues to increase across Canada Highlights

3. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM Data Collection Improvements 3 Online underwriting surveys currently in development Access through web portal Pre-population with historical information (eApp) More comprehensive loss ratio reports

4. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM For Your Reference 4 As of 2014, Colleges of Regulated Health Professions (including nurses of all levels, dieticians, technologists, etc.) require proof of insurance HIROC provides this coverage and will assist with documentation for Colleges Review Policy Limit Adequacy Note: limits above $30 million available through HIROC Brokerage

5. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM For Your Reference (con’t) 5 GLJA – 3 forms developed jointly by HIROC and CMPA Documents to be signed when treating foreign patients Broader Public Sector Accountability Act (BPSAA) Ontario hospitals and healthcare organizations exempt from competitive procurement process if insured by HIROC

6. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM HIROC provides cover for: Privacy violation liability up to $5 million (plus unlimited legal costs) Accidental erasure or corruption of 3 rd party data up to $5 million Actual loss from failure of Electronic Data Processing Extra expense to continue to conduct business as normal Cyber Risk Coverage

7. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM HIROC Brokerage offers coverage for: Privacy breach notification costs (including violation of employees’ privacy) up to $2 million Damage to 3 rd party’s network caused by insured or hacker, including transmission of virus Payment of credible extortionist’s demands Regulatory fines and penalties up to $250,000 Theft of patient information, trade secrets, or other information stored on insured’s network Cyber Risk Coverage (cont’d)

8. 8 The HIROC Brokerage Offers: Coverage for Clinical Trials outside of Canada Coverage for Foreign Patients for elective procedures Legal Expense coverage Disciplinary hearings Severance/Court awards in Wrongful Dismissal suits Construction Insurance

9. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM Industry Trends 9 Class action lawsuits are increasing Privacy claims Nosocomial infections Cyber Risk Settlement values continue to increase Obstetrical claims most costly - reflected in premiums charged Note: While 12% of HIROC’s claims concern L&D, they represent almost 40% of total claims costs

10. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM Industry Trends (con’t) 10 Non-Profit E & O claims remain rare Weather-related claims and the Polar Vortex Water damage claims continue to be costly

11. PARTNERING TO CREATE THE SAFEST HEALTHCARE SYSTEM Questions? 11