Transcript Slide 1

Safety, Health, Environment & Risk Management
FY07 Risk Finance Summary
for Work Force & Property
Insurance Lines
Universe of UTHSC-H Insurance Policies by Management unit by
Premium Cost (based on FY07 data)
$4,500,000
Insurance policies m anaged by SHERM
$4,000,000
Insurance policies m anaged by Legal Affairs
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$36
$17K
$10K
$6K
$500,000
*Does not include f lood premium on all buildings
Eq
Fl
ee
ui
t
pm
en
tF
lo
C
at
om
er
m
er
ci
al
C
ri m
e
En
do
w
m
en
t
Fi
ne
Ar
ts
&O
D
M
al
pr
ac
ti c
e
*P
ro
pe
rty
Em
pl
oy
ee
U
ne
W
m
C
pl
oy
m
en
tI
ns
R
.
es
id
en
tW
C
$0
M
ed
ic
al
Annual Premium
$5,000,000
$200
Annual Property and Workforce Insurance Premiums, by Policy Type, with Proportion
That Might be Potentially Influenced by EH&S Efforts (based on FY07 data)
$1,400,000
Portion possibly influenced by EH&S
activities
$1,200,000
Portion driven by size, construction type, and
physical location
Annual Premium
$1,000,000
$800,000
Portion driven by injury frequency
and severity
Portion driven by payroll and
head count
$600,000
Portion driven by loss
frequency and severity
$400,000
Portion driven by
asset value
$200,000
$*Property
Employee
WC
*Does not include f lood premium on all buildings
CPPP PAM Elements That Might Be Readily Influenced By
EH&S Operations
Fire Department
Response
5%
Emergency Planning
5%
Building Size
15%
Exposure
5%
Water Supply
10%
Fire Sprinklers
15%
Occupancy
Classification
10%
Construction
Classification
10%
Fire System
Supervision
10%
Campus
Management
Programs
15%
Residence
WC
Fleet
Equipment
Floater
UTHSC-H Employee Injury Reports and
Worker’s Compensation Insurance Premium Trends, FY01 to 08
Note: insurance premium influenced predominantly by market conditions, employee payroll, head count, injury frequency and severity
Total Number of First Reports of Injury and Subset of
Compensible Claims Submitted to UT System
$400,000
Oversight by SHERM
initiated
800
Annual Employee Payroll in Thousands of Dollars
Projection
$300,000
600
$200,000
400
$100,000
200
0
$0
2001
2002
2003
2004
2005
2006
2007
2001
Fiscal Year
2002
2003
2004
2005
2006
2007
Fiscal Year
Annual Employee Census
Annual Policy Premium
$1,000,000
5,000
4,000
3,000
2,000
1,000
0
$570,000
in annual
premium
savings
$800,000
$600,000
$400,000
$200,000
$0
2001
2002
2003
2004
Fiscal Year
2005
2006
2007
2001 2002 2003 2004 2005 2006 2007 2008
Fiscal Year
Annual Policy premium reduction from
FY07 to FY08 of $220,280
UTHSC-H Residents Injury Reports and
Worker’s Compensation Insurance Premium Trends, FY01 to 08
Note: insurance premium influenced predominantly by market conditions, employee payroll, head count, injury frequency and severity
Total Number of First Reports of Injury and Subset of
Compensible Claims Submitted to Insurer
$40,000
Oversight by SHERM
initiated
400
Annual Residents Payroll in Thousands of Dollars
Projection
$30,000
300
$20,000
200
100
$10,000
0
$0
2001
2002
2003
2004
2005
2006
2007
2001
Fiscal Year
2002
2003
2004
2005
2006
2007
Fiscal Year
Annual Policy Premium
Annual Residents Census
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
1,000
800
600
400
200
0
2001
2002
2003
2004
Fiscal Year
2005
2006
2007
$68,000 in
annual
premium
savings
2001 2002 2003 2004 2005 2006 2007 2008
Fiscal Year
Annual policy premium reduction from
FY07 to FY08 of $36,000
Workers’ Compensation Insurance Premium Adjustment for
UTS Health Components Fiscal Years 2003 to 2008
(discount premium rating as compared to a baseline of 1, three year rolling average adjusts rates for subsequent year)
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
UT Health Center Tyler (0.17)
UT Medical Branch Galveston (0.16)
0.20
UT HSC San Antonio (0.13)
UT Southwestern Dallas (0.13)
UT HSC Houston (0.09)
UT MD Anderson Cancer Center (0.07)
0.10
0.00
2003
2004
2005
2006
2007
2008
2009
2010
2011
Projected Workers’ Compensation Insurance Premium Adjustment for
UTS Health Components for Fiscal Year 2011
(discount premium rating as compared to a baseline of 1, three year rolling average adjusts rates for subsequent year)
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
Projected highest in class premium adjustment 0.22
0.20
Projected poorest UTHSCH performance 0.15
0.10
Steady state UTHSCH performance 0.09
Projected best UTHSCH performance 0.07
Projected lowest in class premium adjustment 0.02
0.00
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Possible Range of Annual WCI Premium
(Assuming no change in population or payroll)
Performance Option
2008
Best Possible
Performance
No Change
Poorest Possible
Performance
$330,000
2009
2010
2011
$300,000
(-$30,000)
$270,000
(-$60,000)
$240,00
(-$90,000)
$330,000
$330,000
$330,000
$360,000
(+$30,000)
$390,000
(+$60,000)
$420,000
(+$90,000)
UTHSC-H Retained Loss Summary for FY06
(Total FY06 losses by cause and amount in dollars, Total Loss~$390,000)*
Theft,
$90,114 (27%)
Burglary, Vandalism,
Forgery, $17,042 (5%)
Building Electrical
Disruption, $20,000
(6%)
Chilled Water Line Leak,
$221,000 (58%)
Other Loss, $7,000 (2%)
Breach of Building
Envelope, $15,000 (5%)
Sewage Line Clog,
$10,000 (3%)
*Not inclusive of any recorded Capitol Assets inventory
irregularities. For additional information contact UTHSC-H
Capitol Assets Team
Other Property Policies
Fleet Insurance
Liability
Comp/Coll
Losses
Premium
FY03
$2,528
$43,322
FY04
$0
$44,409
FY05
$0
$45,400
FY06
$0
$35,757
FY07
FY08
Equipment Floater
Rate
(per $100 of insured value)
Total Insured Value
Annual Premium
FY03
$0.42
$4,600,788
$19,390
FY04
$0.49
$3,083,582
$15,204
FY05
$0.42
$4,017,404
$16,870
FY06
$0.46
$3,581,709
$16,476
FY07
FY08
Other Property Policies
Endowment
Rate
Total Insured Value
Losses
Annual Premium
FY03
FY04
FY05
FY06
$6229
FY07
$7129
FY08
$7129
Fine Arts
Rate
Total Insured Value
Losses
Annual Premium
FY03
FY04
FY05
FY06
$200
FY07
$215
FY08
$226
SHERM’s Total Cost of Risk Transfer
Insurance Line Managed by SHERM
FY07
Annual % change
Estimated FY08 Cost
Worker's Comp-Employees
$
547,924
-40%
$
327,644
Worker's Comp-Residents
$
219,749
-20%
$
175,799
General Liability-CDC
$
7,189
0%
$
7,189
Endowment Policy
$
7,129
0%
$
7,129
Flood
$
108,742
7%
$
116,354
Fine Arts - Multiple Locations
$
215
5%
$
226
Mobile Diagnostic Equipment
$
6,284
0%
$
6,284
Auto Physical Damage
$
21,981
10%
$
24,179
Auto - Hired/Non Owned
$
2,737
10%
$
3,011
Auto Liability
$
17,516
15%
$
20,144
Property-Fire & AOP Premium incl Fees
$
155,800
0%
$
155,800
Property - Fire & AOP - UTS retention
$
163,441
0%
$
163,441
Property-Named Windstorm & 100-Yr Flood
$
823,623
0%
$
823,623
Equipment Policy
$
24,858
0%
$
24,858
Total Cost of Risk Transfer
$
2,107,188
-12%
$
1,855,681
FY08 Savings
$251,507
Future Considerations
• SHERM recommends consideration of the
development of a retained loss pool for property.
– Retained losses: those < $250,000 property
deductible or due to excluded perils
– A retained loss pool would provide resources to
promptly assist in restorative activities when damage
occurs in laboratory and office space.
– Could also provide “up front funds” in cases of
subrogation.