Transcript Slide 1

Safety, Health, Environment & Risk Management
FY07 Risk Finance Summary
for Work Force & Property
Insurance Lines
Annual Property and Workforce Insurance Premiums, by Policy Type,
with Proportion That Might be Potentially Influenced by EH&S Efforts
(based on FY08 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 flood premium on all buildings
CPPP PAM Elements That Might Be Readily Influenced By
EH&S Operations
Emergency Planning
Fire Department
5%
Response
Building Size
5%
15%
Exposure
5%
Water Supply
Fire Sprinklers
10%
15%
Occupancy
Classification
10%
Campus
Construction
Management
Classification Fire System
Programs
Supervision
10%
15%
10%
Resident
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 census, employee payroll, and injury frequency and severity
Annual Employee Census
Annual Employee Payroll in Thousands of Dollars
Oversight by SHERM
$400,000
5,000
4,000
3,000
2,000
1,000
0
$300,000
$200,000
$100,000
$0
2001
2002
2003
2004
2005
2006
2007
2008
2001 2002 2003 2004 2005 2006 2007 2008
Fiscal Year
Fiscal Year
Annual Policy Premium
Total Number of First Reports of Injury and Subset of
Compensible Claims Submitted to UT System
104 fewer
injuries
reported
800
$1,000,000
600
$570,000
in
premium
savings
$800,000
$600,000
72 fewer
injuries
needing
medical care
400
200
0
2001
2002
2003
2004
2005
Fiscal Year
2006
2007
2008
$400,000
$200,000
$0
2001 2002 2003 2004 2005 2006 2007 2008
Fiscal Year
Annual Policy premium reduction from
FY07 to FY08 of $220,280
Resource Allocation Program Rebates
$1,000,000
$800,000
$600,000
$167,000 in
RAP Rebate
Reduction
$400,000
$200,000
$0
2001 2002 2003 2004 2005 2006 2007 2008
Fiscal Year
UTHSC-H Residents Injury Reports and
Worker’s Compensation Insurance Premium Trends, FY01 to 08
Note: insurance premium influenced predominantly by market conditions, employee census, employee payroll, and injury frequency and severity
Annual Residents Census
Annual Residents Payroll in Thousands of Dollars
Oversight by SHERM
1,000
$40,000
800
$30,000
600
400
$20,000
200
$10,000
0
2001
2002
2003
2004
2005
2006
2007
2008
$0
2001
Fiscal Year
2002
2003
2004
2005
2006
2007
2008
Fiscal Year
Total Number of First Reports of Injury and Subset of
Compensible Claims Submitted to Insurer
Annual Policy Premium
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
400
300
200
100
0
2001
2002
2003
2004
2005
Fiscal Year
2006
2007
2008
$68,000 in
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
Oversight by SHERM
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
Oversight by SHERM
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, payroll, or other influencing factors)
Estimated Premium
2008
Upper bound similar to
UTHC Tyler
No Change
Lower bound similar to
UTMDACC
$328,000
2009
2010
2011
$358,000
(+$30,000)
$388,000
(+$60,000)
$418,000
(+$90,000)
$ 328,000
$ 328,000
$ 328,000
$298,000
(-$30,000)
$268,000
(-$60,000)
$238,00
(-$90,000)
Survey of Employees and Supervisors Filing UTHSC-H First Reports of Injury in 2007
(Email based Zoomerang survey for period February 1, 2007 to August 31, 2007)
Employee Population
(not reporting any
injuries, n = 4,181)
Injured Employees Requiring Care and Loss Time (n = 39):
Not Included in survey, as each injured worker that accrues
lost time is assigned a case manager to personally assist in
the rehabilitation process.
Employees requiring care, but no lost time (n = 28)
Employees not requiring care, no lost time (n = 179)
No Care or Lost Time
(18% response rate)
Care But No Lost Time
(57% response rate)
Supervisors
(13% response rate)
Was this the first time you have reported an injury or exposure at UTHSC-H?
67%(Y) 33%(N)
62%(Y) 38%(N)
37%(Y) 63%(N)
Prior to the reported injury event, were you aware of your obligation to report any injury or exposure?
88%(Y) 12%(N)
88%(Y) 12%(N)
96%(Y) 4%(N)
Did you receive a copy of the completed first report of injury form?
70%(Y) 30%(N)
62%(Y) 38%(N)
96%(Y) 4%(N)
To your knowledge has the source of your injury or exposure been addressed?
81%(Y) 19%(N)
88%(Y) 12%(N)
88%(Y) 12%(N)
Did you encounter any issues with the reporting process that you didn’t know or anticipate?
12%(Y) 88%(N)
38%(Y) 62%(N)
27%(Y) 73%(N)
Our records indicate that you did not receive any health care in response to your injury or exposure.
Who made the determination that health care was not needed?
72% Yourself
9% Supervisor
19% Other
Have you experienced any residual affects from your injury or exposure?
9%(Y) 91%(N)
Where did you access health care?
Please indicate your impression of the level of service provided by the health care provider who addressed your injury or exposure?
12%(Y) 88%(N)
53% Employee Health
20% Student Health
27% Other
38% Very Good
44% Good
6% Average
0% Poor
12% Very Poor
Were you able to easily access the necessary Supervisor's First Report of Injury form?
92%(Y) 8%(N)
If any assistance was needed in order to complete and submit the Supervisor's First Report of Injury form, was this assistance readily available?
46% (Y)
8% (N)
46% (none needed)
Were you provided with the information needed for you to effectively manage the affected employee?
100%(Y) 0%(N)
Key Findings
• Most employees and supervisors (88 to 96%) indicated their
knowledge of the importance of reporting injuries and exposures
• It is largely the affected employees (72%) making the determination
to seek or not seek health care
• Most employees (88 to 91%) reported not experiencing residual
effects from their reported event
• Affected employees noted that the cause of their injury was
corrected (81 – 88%)
• All supervisors reported that they were provided with the information
needed to effectively manage the affected employee (100%)
FY07 Property Losses
•
Losses incurred but covered by UTS
Comprehensive Property Protection
Program
MSB sprinkler loss total of $460,000
Currently pursuing subrogation to at fault
contractor, $250,000 retained by deductible
•
Retained Property Loss by Peril
( Total $645,895)*
Water Related
88%
Losses incurred but covered by 3rd party
RRF Fire $10-$14 Million
Potential retention of $1-$3M
Burglary
<1%
Environmental
<1%
Criminal Mischief
1%
Fire
1%
•
Retained losses
Theft
10%
Water leak in MSI $210,000
Theft total $65,000 (predominantly laptops)
Electrical power disruption no implicated in any
losses
Other losses $65,000
*Not inclusive of any recorded Capitol Assets inventory
irregularities. For additional information contact UTHSC-H
Capitol Assets Management
Help Avoid the 3 Main Causes of Property Loss at UTHSC-H
The three main causes of property loss at UTHSC-H in FY06 were water leaks, theft, and electrical power interruption. These three perils resulted in over
$331,000 in direct loss and untold disruption to teaching, research, and service activities. The deductible for the UTS Comprehensive Property Protection
Program is $250,000 per occurrence, in FY06 none of the losses exceeded the per occurrence deductible, however the sum of retained losses exceeded the
deductible by $140,000. In special cases additional insurance can be purchased*. Summarized below are simple steps that can be taken to avoid such losses.
Potential For Loss
Simple Prevention Measures
For more information and
assistance
Water Damage
Water damage accounted for $221,000 of
loss in FY06. Water can enter a lab or office
from the same floor or from the floor above.
Move equipment off of the floor and
cover when not in use. Evaluate
possible purchase of supplemental
insurance for certain types of
equipment*
Contact Facilities Planning
and Engineering for more
information, (713)500-3498.
Theft
Theft accounted for $90,114 of loss in FY06,
the majority of which were theft of laptops,
PDAs and cell phones.
Secure laptops, PDA’s, or cellular
phones. Always backup data and
keep it in a physically separate
location. For more information about
how to lock a PC or laptop:
http://www.uth.tmc.edu/med
/msit/howdoi/physical_security.htm
Evaluate possible purchase of
supplemental insurance for certain
types of equipment*
Contact University of Texas
Police Department for more
information, (713)794-4357.
Electrical Power Interruption
Electrical power disruption accounted for
$20,000 worth direct losses in FY06.
However this is not reflective of the loss of
priceless research specimens.
Ensure that all critical equipment has
backup power or has the ability to alert
local personnel when power or
temperature is disrupted. The
production of duplicate or split
samples is encouraged. Finally, some
buildings are equipped with the
necessary infrastructure to provide
monitoring of temperature.
Contact Facilities Planning
and Engineering for more
information, (713)500-3498.
*Information about the purchase of additional insurance can be obtained by contacting Risk Management; 713-500-8100.
Other Policies
Fleet Insurance
Liability
SHERM
Comp/Coll
Losses
Premium
FY03
$189
$334
$96,052
$43,322
FY04
$169
$349
$2,610
$37,508
FY05
$234
$434
$20,074
$40,443
FY06
$230
$412
$905
$38,202
FY07
$230
$418
$846
$42,234
FY08
$252
$459
$0
$46,457
Equipment Floater
Rate
(per $100 of insured value)
SHERM
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
$0.54*
$3,983,875
$23,414
FY08
$0.54*
$3,983,875
$23,414
*Not Inclusive of current SHERM administrative processing fee of $0.46
Other Policies
Endowment Policy (Liability)
Total Insured Value
FY05*
Loses
Annual Premium
$5,462
$0
$3,177
$0
$0
$0
FY07**
$53,254
$0
$2,746
FY08**
$53,254
$0
$7,129
FY06
Fine Arts
Limit based Premium
Losses
Annual Premium
FY05
$500,000
$0
$2,689
FY06
$500,000
$0
$200
FY07
$500,000
$0
$215
FY08
$500,000
$0
$226
*For Liability only at 1246 FM Hwy 102, Eagle Lake, TX -$5,735 - $2,558 for property
deletion 8/31/2004
**For Liability only at 1133 John Freeman Boulevard - The property was added
06/01/2006 premium pro-rata
SHERM’s Total Cost of Risk Transfer
Insurance Line Managed by SHERM
FY07
FY08
Annual Change (%)
Worker's Comp-Employees
$
547,924
$
327,644
(40)
Worker's Comp-Residents
$
219,749
$
175,799
(20)
General Liability-CDC
$
7,189
$
7,189
0
Endowment Policy
$
7,129
$
7,129
0
Fine Arts - Multiple Locations
$
215
$
226
5
Mobile Diagnostic Equipment
$
6,284
$
6,284
0
Auto Physical Damage
$
21,981
$
24,179
10
Auto - Hired/Non Owned
$
2,737
$
3,011
10
Auto Liability
$
17,516
$
20,144
15
Property-Fire & AOP Premium incl Fees
$
155,800
$
155,800
0
Property - Fire & AOP - UTS retention
$
163,441
$
163,441
0
Property-Named Windstorm & 100-Yr Flood
$
832,623
$
823,623
0
Flood - 60 various policies*
$
108,742*
$
116,354*
7
Equipment Policy
$
24,858
$
24,858
0
Total Cost of Risk Transfer
$
1,998,446
$
1,746,939
(13)
FY08 Savings
$251,507
*NFIP places policies on individual locations, such as UT Apts
*Paid out of the Named Windstorm & 100-Yr Flood
Future Considerations
• SHERM recommends the development of a retained loss
pool or funded reserve for property losses.
– 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 a laboratory or
office space.
– Could also provide “upfront funds” in cases of subrogation.
Appendix A
Universe of UTHSC-H Insurance Policies by Management Unit
by Premium Cost and Management Unit (based on FY08 data)
$5,000,000
$4,500,000
Insurance policies managed by SHERM
Insurance policies managed by Legal Affairs
$4,000,000
Insurance policies managed by Human Resources
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$7K
$10K
$23K
$40K
$215
$500,000
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Annual Premium
$3,500,000