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A Torus                         presentationA new approach to managingcomplex risks
About the CompanyTorus Specialty Insurance Company                         •Torus is a global specialty insurer.Torus Nati...
About our investors 25 years specializing in the energy    15 years investing solely in financial  industry             ...
A deeper understanding of clients’ risks   Advanced risk   More accurate                                      Transparency...
Healthcare OverviewTorus believes that the best healthcare institutions work    Torus demonstrates these beliefs by provid...
Healthcare OverviewSwing Plans/Retros                                           Presumptive Premium Discount       Swing ...
Healthcare OverviewPost Expiration Retention Buy-downs                           Split Retentions Torus provides Insureds...
Healthcare OverviewCommutation Provision                                        Rate Stabilization Endorsement There is a...
Healthcare OverviewFronting Structures                                          Program Business There are several reason...
Reducing the Cost of RiskLike the best-in-class providers of medical care, Torus understands the balance between tried-and...
A Torus                         presentationA new approach to managingcomplex risks
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Torus Healthcare 2012

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Torus Healthcare Product Overview

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Torus Healthcare 2012

  1. 1. A Torus presentationA new approach to managingcomplex risks
  2. 2. About the CompanyTorus Specialty Insurance Company •Torus is a global specialty insurer.Torus National Insurance Company •Local Underwriting, Global Reach: Torus has operations in 10 countries, with five regional offices in the US.A.M. Best Rating of A- g (Excellent) •Torus is organized into two core underwriting units: TorusGroup Rating Americas and Torus International, with each providingFinancial Size Category (FSC) of XI* direct insurance for Property, Casualty and Specialty($750 Million to $1 billion) Lines.(*effective November 8, 2011) •Torus specialized ventures include our Bermuda-based reinsurance team, Lloyd’s Syndicate 1301, and our newA.M. Best believes the Torus groups consolidated risk- status as a licensed and admitted reinsurer in Brazil.adjusted capitalization is likely to be maintained at astrong level, based on performance forecasts and A.M. •Torus offers industry-driven insurance products forBests specific insurance start-up criteria. Energy, Construction, Aviation, Space and of course, Healthcare.2
  3. 3. About our investors 25 years specializing in the energy  15 years investing solely in financial industry services industry Global platform with $20 billion of  New York-based investing in the US, equity investments Europe, Latin America, Asia and Central Europe Investments in over 100 platform acquisitions  Portfolio companies include Axis, Catlin, Kyobo Life and Sparta Portfolio companies include Abbot Insurance Group, Acteon & Dresser
  4. 4. A deeper understanding of clients’ risks Advanced risk More accurate Transparency modeling pricing of risk
  5. 5. Healthcare OverviewTorus believes that the best healthcare institutions work Torus demonstrates these beliefs by providing risk-transfertogether with insurance providers to assure that safe, tools that truly customize coverage to the needs of yourcost-effective care is provided to patients. institution. Some of the tools we offer for customized protection are:We believe that because dollars spent on malpracticecases are dollars that are not available to provide care  Swing Plans/Retrospectively Rated Premiumfor patients, we must work to ensure that inevitableinjuries are compensated fairly, not injudiciously.  Presumptive Premium DiscountFurther, we believe that healthcare institutions should be  Retention Buy-downsprovided insurance mechanisms that reward theprovision of the safest, most effective evidence based  Split Retentionsmedicine reasonably achievable.  Commutation Provisions  Rate Stabilization Endorsements  Fronting Structures  Programs5
  6. 6. Healthcare OverviewSwing Plans/Retros Presumptive Premium Discount  Swing plans or “retros” offer many advantages  Rather than requiring an insured to wait until year has for the insured. Organizations that achieve losses passed before adjusting a premium downward for no significantly better than actuarially predicted losses occurring, the Presumptive Premium Discount benefit from a premium that rewards low loss endorsement allows the Insured to bind coverage at a activity. Unlike some of the retrospectively rated reduced premium. Only if a loss occurs, the premium plans of the past: is adjusted proportionately based upon paid loss within the Torus layer. If 10% of the Torus limit is  Plans can be structured to have a finite exhausted by a paid claim, there is an additional adjustment period premium charge of 10%.  Premium calculations are simplified.  The premium adjustment is proportional to the  Unlike some dividend plans, you do not have amount of exhausted limit. to be an Insured five years from now to  This endorsement can be modified so the receive return premiums additional premium is used to reinstate the exhausted limit.6
  7. 7. Healthcare OverviewPost Expiration Retention Buy-downs Split Retentions Torus provides Insureds the ability to buy-down their  Retentions are rarely designed to address the attachment after the policy expires. historical severity arising out a specific location, procedure or time period. Through account-  An ideal tool to protect against volatility within specific modeling and manuscripted policy the SIR/captive layer. language, Torus works with Insureds to design programs that:  Prior to binding, we offer pre-determined cost and time periods to purchase insurance within  Split the retention for OB and Non-OB claims the Insured’s SIR layer.  Stair-step the retention, so incidents from  The buy-down of the retention can occur different time periods have specific during or after the policy period. attachments  Allow multi-state risks to schedule different retentions for each venue7
  8. 8. Healthcare OverviewCommutation Provision Rate Stabilization Endorsement There is a growing interest in reinsurance of lower  Torus offers multi-year policies in situations when layers in captive programs, but Insureds struggle with we can predict the frequency of claims with a the costs and benefits of retaining less risk. When high level of confidence. In situations where results appear favorable, a commutation provision claim activity is less predictable, Torus can offer a allows the Insured/Reinsured to accept returned Rate Stabilization Endorsement. premium by releasing Torus (the Reinsurer) from future liabilities.  An endorsement that commits to renewal terms based upon the current rate, terms  The request to commute may occur up to and conditions. three years after the policy expiration.  The terms remain unless there is a significant  Depending upon the class of business, the change in loss experience, exposure or returned premium may be up to 40% for the ownership during the policy period. commutation.  This offer is usually made on multi-year policies or annual policies with high predictability.8
  9. 9. Healthcare OverviewFronting Structures Program Business There are several reasons why a facility may need  Torus entertains programs for most healthcare-related admitted or rated paper, even when they retain a casualty and professional lines of insurance. As long as large portion of the risk. When Insureds need a there is $5M in expected premium volume, we will “fronting company,” Torus can consider: consider:  Matching deductible programs, where the  National or state-specific programs; Policy’s deductible equals the per-claim limit of liability.  Single or multi-line;  Collateral in the form of a Letter of Credit or  In-house or third party claims handling; 114 Trust.  Agency captive participation or 100% Torus.  A funds-withheld structure to alleviate the need for a Letter of Credit. 9
  10. 10. Reducing the Cost of RiskLike the best-in-class providers of medical care, Torus understands the balance between tried-and trueapproaches to risk and the need for innovation. In placements where we are the lead insurer, we willwork with you as needed to identify risk consultants who can develop programs that improve your riskprofile…and reduce your total cost of risk.Our goal is to provide the most appropriate and cost-effective coverage feasible, freeing resources foryour most important mission: maintaining and restoring the health of your community.
  11. 11. A Torus presentationA new approach to managingcomplex risks

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