Aon Risk Solutions and XL Insurance (Bermuda), XL Group's Bermuda insurance, have launched a new stand-alone integrated occurrence product for the healthcare industry called Catastrophic Integrated Occurrence or CAT IO.
With up to $50 million of capacity, the product is designed to provide catastrophe coverage in the event of a large batch (integrated occurrence) event. This product is a result of collaboration between the healthcare practices of Aon and XL in an effort to address the needs of healthcare industry clients.
By basing CAT IO on the Bermuda XL 004 form, which has a proven history with respect to integrated occurrence claims, the new product will provide risk managers within the health care industry additional coverage for catastrophic claims.
“There have been an extraordinary number of batch incidents over the past few years in the healthcare industry due to clinical integration, which have come to light because of greater transparency and improved reporting mechanisms,” said Annie Sousa, senior vice president with Aon Risk Solutions' Broking Center in Bermuda.
“This product, as a continuous policy, will allow a client to group together a series of related incidents, which often extend over considerable periods of time, into a single integrated occurrence, subject to one self-insured retention, helping to insure the health care system from a catastrophic batch event.”
Carla Greaves, senior vice president and chief excess casualty underwriter, and Wesly Guiteau, senior vice president and underwriting manager, healthcare, at XL Insurance Bermuda said that XL-004 Policy Form offers a much broader level of batch coverage than the typical Claims Made and Captive Forms utilized for healthcare insurance programs.
“The XL-004 Policy Form Integrated Occurrence feature has been tested and has proven to respond effectively to health care risks. In fact, 70 percent of health care claims paid by XLIB have been on the basis of integrated occurrences,” said Greaves.
Aon Risk Solutions, XL Insurance, catastrophe coverage, Bermuda