Transcript Property Casualty Insurance Program

UTSA
Property & Casualty Insurance Program
Financing Risk Management
John DeLaHunt, MBA, ARM
UTSA Risk & Life Safety Manager
February 20, 2016
Business Affairs: Your Partner for Successful Solutions
1
Policies in Place for People
•
•
•
•
•
Workers Compensation (WCI) *
Unemployment Compensation (UCI) *
Directors & Officers (D&O) *
Commercial Crime *
Cyber liability (new in 2016)
FY15 Premiums
$780,147
FY16 Premiums (estimated)
$779,215
* Offered through UT System to all UT institutions (“System Coverage”)
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2
Policies in Place for Property
•
•
•
•
•
Real Property (CPPP)*
Vehicles (liability, physical damage, etc)*
Scheduled equipment*
Fine Arts*
Mobile equipment
FY15 Premiums
$373,521
FY16 Premiums (estimated)
$405,047
* Offered through UT System to all UT institutions (“System Coverage”)
Business Affairs: Your Partner for Successful Solutions
3
Policies in Place for Events
• Supplemental Excess General Liability
– Festivals (Texas Folklife, Asian, Homecoming)
• Tenant User Liability Insurance Program
– Third party (student orgs, e.g.) events
• Sports/Academic Camp Insurance
FY15 Premiums
$36,549
FY16 Premiums (estimated)
$46,955
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4
UTSA Insurance Premiums
FY15
People
(WCI, UCI, D&O, Crime, Cyber)
Property
(CPPP, Auto, Mobile Equipment,
Equipment)
Liability
(Festivals, TULIP, Camps, D/B)
Total
FY16
(estimated)
$780,147
$779,214
$373,522
$405,047
$36,549
$46,955
$1,190,218
$1,231,217
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5
CPPP Fire/AOP Structure
Loss
up
$1B
$1B
$5M
$5M
$250k
$250k
$0
Financing
Retained
Commercial Insurance
50% institution
w/loss
(5 yr amortization)
50% all other institutions
(5 yr amortization)
Deductible – institution w/loss
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6
CPPP Wind & Flood Structure
Loss
Up
$150M
$150M
$50M
$50M
$250k
$250k
$0
Financing
Retained
Commercial Insurance
60% Debt Service
40% Debt Svc
All other institutions
Institution w/loss
(deferred capitalization on
(20-30 yr amort.)
property fund, 20-30 yrs)
Deductible (institution w/loss)
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UTSA Fire/AOP Cash Flows
Following Catastrophic Property Loss (thousands of dollars)
$0
Year 0
Year 1
-$25
Year 2
-$25
Year 3
-$25
Year 4
-$25
Year 5
-$25
-$250
-$475
UTSA suffers
the loss
-$475
-$475
-$475
-$475
Any sister institution
suffers the loss
Business Affairs: Your Partner for Successful Solutions
8
Retention
CPPP - Fire/AOP and W&F
• Exposure
– Property loss >$250k
• Deductible if UTSA suffers the loss
– $250k per occurrence, both programs
• Fire/AOP Replenishment over 5 years
– $475k per year if UTSA suffers the loss
– ~$25k per year if another campus suffers the loss
• W&F Debt Service over 20-30 years
– $20M if UTSA suffers the loss
– ~$1.5M if another campus suffers the loss
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9
Retention
Employment Practices
• Exposures
–
–
–
–
–
Wrongful Termination
Harassment/Retribution
Denial of Tenure
Civil rights actions
Other federal causes
• Deductibles
– $100,000 individual per occurrence
– $300,000 institution per occurrence
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10
Retention
Tort Liability
• Exposures
– Premises defect
– Tangible personal property
– Motor-driven equipment
• Limit of Liability – fully retained
–
–
–
–
$250,000 individual, per occurrence
$500,000 limit to individuals, per occurrence
$100,000 property damage
$600,000 total
Business Affairs: Your Partner for Successful Solutions
11
Retention Summary
Problem
Insurance
Exposure
Property Loss to UTSA
- Fire/AOP
CPPP
$250k Deductible
$475k Fund Replenishment for 5 yrs
Property Loss to UTSA
- Wind and Flood
CPPP
$250k Deductible
20-30 yrs debt service on $20M
Property Loss in system
- Fire/AOP
CPPP
~$25k Fund Replenishment for 5 yrs
Property Loss in system
- Wind and Flood
CPPP
20-30 yrs debt service on ~$1.5M
Deferred Capitalization
Employment Practices
D&O
$100k individual
$300k institution
Tort Liability
$250k Per person
$500k Per occurrence
$100k Property Damage
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