1. 2010 Medical Professional Liability Symposium Chicago, IL ~ March 18 & 19, 2010 HPL Benchmarking: Do the Numbers Lie?

2. HPL Benchmarking: Do the Numbers Lie? Moderator: Robert Allen, Senior Vice President, Healthcare, Torus Insurance Panelists: Erik A. Johnson, FCAS, MAAA, Associate Director & Actuary, Aon Global Risk Consulting Peter Schultheiss, FCAS, Division Actuary & Vice President, Zurich North America Andrew Shapiro, JD, Senior Vice President, HealthPro, CNA Paul Voller, Partner, Lloyd & Partners Limited

3. HPL Benchmarking Medical Malpractice Results  Illustration of Ultimate Loss Ratios For Illustrative Purposes Only: 2007 and 2008 Ultimate Loss Ratios

4. HPL Benchmarking Medical Malpractice Results  2008 Loss & Expense Ratios 2008 Florida Medical Malpractice Financial Information

5. HPL Benchmarking Aon/ASHRM Hospital Professional Liability & Physician Liability 2009 Benchmark Analysis

6. HPL Benchmarking Aon/ASHRM Benchmarking Study  Methodology (# claims, # years, exposure)  Trends Analyzed Never Events Frequency Severity Hospitals Physicians

7. HPL Benchmarking FREQUENCY

8. HPL Benchmarking Aon/ASHRM HPL Benchmarking Study - Overall Frequency per Bed 2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis

9. HPL Benchmarking Aon/ASHRM HPL Benchmarking Study - Frequency per 10,000 Births 2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis

10. HPL Benchmarking SEVERITY

11. HPL Benchmarking Aon/ASHRM HPL Benchmarking Study – Overall Claim Severity Limited to $2M 2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis

12. HPL Benchmarking Aon/ASHRM HPL Benchmarking Study – Closed Claim Analysis of Indemnity Payments HPL Avg. Paid Indemnity @ $2M NPDB Avg. Paid Indemnity Unlimited 2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis

13. HPL Benchmarking Aon/ASHRM Benchmarking Study Findings - For-Profit vs. Not-for-Profit 2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis

14. HPL Benchmarking CNA AGING SERVICES STUDY  8,000 Claims Across a 5-Year Period  For-profits have higher frequency; gap is closing  Severity Gap is Non-Existent  Facility and Cause of Loss Trends  Most severe injuries are death, sexual assault, amputation, and pressure ulcer

15. HPL Benchmarking Benchmarking Study Findings Bed Size Loss Cost per Bed @ $2M 2009 Aon/ASHRM Hospital Professional Liability & Physician Liability Benchmark Analysis

16. HPL Benchmarking STATE REPORTS

17. HPL Benchmarking Missouri 2008 Medical Malpractice Insurance Report

18. HPL Benchmarking 2008 Pennsylvania Court Statistics Defense Verdicts$500,000 or LessTotal No. of Cases% % 2004235 78.4 299.8 299 2006191 83.0 167.0 230 2008131 81.4 63.7 161

19. HPL Benchmarking 2008 Pennsylvania Medical Malpractice Case Filings: 2000 - 2008

20. HPL Benchmarking WHAT’S NEXT?

21. HPL Benchmarking The Future of Benchmarking  Underwriting/Brokerage Strategy?  Rate Making?  50 States Collecting Data?  More Facility-Closed Claim Studies?  CMS Quality Indicators?

22. 2010 Medical Professional Liability Symposium Chicago, IL ~ March 18 & 19, 2010 HPL Benchmarking: Do the Numbers Lie?