Perform actuarial loss & LAE reserve analysis of hospital professional liability, medical professional liability and general liability reserves
Huggins can review your claims experience and determine your indicated ultimate liabilities on a quarterly, semi-annual, or annual basis. We can provide estimates for deductible programs, self-insured retentions, or captive insurance companies. Estimates can be provided on both a discounted and an undiscounted basis. We provide a range of reserves, at various confidence levels, so that you can book your liabilities at whatever level of risk you wish to assume.
Perform actuarial analysis of hospital professional liability, medical professional liability and general liability future funding levels
Huggins can project your expected funding for future policy years to assist you with the budgeting process. We can produce estimates at various policy limits and/or attachment points, so that you can decide if a change to your present program would result in a cost benefit.
Issuance of Statutory Loss Reserve Opinion (SLRO) for captive insurance companies formed by hospitals and/or health systems
Huggins can provide the required written opinion on the reasonability of the captive’s carried reserve amount for filing with the appropriate insurance department(s).
Issuance of statement of actuarial opinion on self-insured loss and LAE expense reserves for hospital professional liability, medical professional liability and general liability reserves
Huggins can provide a written opinion on the indicated reserve amount, should one be required for filing, with reinsurers, governmental agencies or other organizations.
Perform captive feasibility analysis
Huggins can assist you in deciding whether it makes sense for you to form a captive insurance company to cover your claims experience, whether only for your own institution or for a group of hospitals and/or physicians. We are familiar with all of the possible domiciles for captive insurers and can assist you in selecting the best location that meets your needs. We produce the required pro forma financial statements for submission to the appropriate regulatory authorities or provide you with the necessary liability values for you to complete the statements on your own. We also help you find service providers, such as accounting, legal and claim handling firms.
Provide litigation support and expert witness testimony on the Client’s behalf
Huggins can assist you in legal matters by providing actuarial estimates of items in dispute, while taking into account expected payment patterns and interest rates. We are also available to testify in support of our analyses before regulatory authorities or as part of a lawsuit.
Perform calculation of accrued liability for death, disability and retirement (DDR) for medical professional liability clients
Huggins can provide captive insurers with a calculation of the accrued liability for DDR based on our life contingency models, which incorporate assumptions on withdrawal, claims experience, and underwriting expenses based on your own personal experience.
Assist the Hospital to comply with AICPA SOP 87-1
Huggins can provide your hospital with an estimate of the required incurred but not reported (IBNR) liability that must be booked by claims made insureds to satisfy the requirements of SOP 87-1, which requires that a liability be carried to cover the cost of unreported claims not covered by your insurance policy.
Identification of developing trends in the Hospital’s self-insured claim liabilities
Huggins can review your historical claims experience and point out those underlying causes of increases or decreases in your self-insured claim costs, enabling you to make the necessary changes to keep costs from escalating out of control.
Determine exposure-based methodologies for allocating insurance expenses to various entities comprising healthcare systems
Huggins can review your claims experience and provide you with a methodology for allocating the appropriate cost of claims to each individual cost center. We can provide benchmarks to allow to you to ensure that no cost center is deviating from planned results and how to adjust the cost allocation should unexpected results occur.