Safety, Health, Environment & Risk Management Risk Finance

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Safety, Health, Environment Risk Management
Risk Finance Summary for Work Force Property
Exposures FY08 Experience and FY09
Projections
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UTHSC-H Employee Injury Reports and Workers
Compensation Insurance Premium Trends, FY01 to
09Note insurance premium influenced
predominantly by market conditions, employee
census, employee payroll, and injury frequency
and severity
Oversight by SHERM
- 123,753
1,893,572 in total premium savings since FY03
- 293,331
188 fewer reported injury events compared to FY 03
- 348,718
- 568,998
- 558,772
105 fewer injuries requiring medical compared to
FY 03
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227,000 in RAP reduction in FY09 as compared to
peak of 436,100 in FY07
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UTHSC-H Residents Injury Reports and Workers
Compensation Insurance Premium Trends, FY03 to
10Note insurance premium influenced
predominantly by market conditions, employee
census, employee payroll, and injury frequency
and severity
Oversight by SHERM
Increase due predominantly to needlesticks.
Targeted investigation and interventions underway
80,000 in total premium savings since peak in
FY06
Annual policy premium reduction from FY09 to FY10
of 6,000
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Total of 124,581 in dividend payments since
SHERM oversight
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Workers Compensation Insurance Premium
Adjustment for UTS Health Components Fiscal
Years 2003 to 2009(discount premium rating as
compared to a baseline of 1, three year rolling
average adjusts rates for subsequent year)
Oversight by SHERM
UT Southwestern Dallas (0.17)
UT Medical Branch Galveston (0.16)
UT HSC San Antonio (0.12)
UT HSC Tyler (0.09)
UT HSC Houston (0.09)
UT MD Anderson Cancer Center (0.05)
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Possible Range of Annual WCI Premium (Assuming
no change in population, payroll, or other
influencing factors)
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MHH Increase in BI coverage from FY08-FY09,
49MM to 75MM FY09 Premium reduced by
290K, due to scheduled risk control measures
(robust EMP, flood doors, training, etc.) and
risk based loss estimates.
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• - Losses Incurred but covered by UTS
• Comprehensive Property Protection Program
• The CPPP did not experience any losses from
  UTHSC-H
• - Losses incurred but covered by third party
• Metro Bus damage to the Ross Sterling Breezeway
  at
• MSB, 25,000
• - Retained Losses
• Hurricane Dolly estimated loss to UTHSC-H
  Brownsville,
• RAHC 125,000
• Eight of twelve retained losses were water
  related losses

Not inclusive of any recorded capital assets
inventory irregularities. For additional
information contact UTHSC-H Capital Assets
Management Estimate based on replacement cost
of damaged property
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Not inclusive of any recorded capital assets
inventory irregularities. For additional
information contact UTHSC-H Capital Assets
Management Estimate based on replacement cost
of damaged property
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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.
Information about the purchase of additional
insurance can be obtained by contacting Risk
Management 713-500-8100.
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Enhanced Risk Assessment Control Services

• Services Provided
• Institutional exposures objectively ranked by
  value exposed to loss revenue, expenses, and
  total assets
• Targeted analysis on specific risk exposures and
  the development of risk control techniques to
  mitigate loss, provide assistance with
  installation, and implementation
• Assess and analyze existing and potential risk
  financing options
• Assist in development of customized Business
  Continuity Plan for unit
• Inventory and document assets to facilitate
  recovery in event of loss
• Units Served to Date
• Gulf Coast Hemophilia, Neurobiology and Anatomy,
  Microbiology and Molecular Genetics, and The
  Biotechnology Center

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Other Policies
SHERM
SHERM
Not Inclusive of current SHERM administrative
processing fee of 0.46
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Other Policies
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
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Cost of Risk Transfer
NFIP places policies on individual locations,
such as UT Apts Paid out of the Named Windstorm
100-Yr Flood
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Discussion Items

• Despite best management efforts, market
  conditions and UT System loss experience have
  increased wind and flood premiums by 56
• Due to these changes, RMI suggests consideration
  of removal of all NFIP and TWIA coverage that is
  not required by the CPPP and resides outside the
  500yr floodplain. Projected savings of 75,000
• Current status of retained loss pool?
• Despite continual reductions in WCI losses,
  rebate amounts continue to diminish. The
  Employee Health program will likely require an
  additional 70,000/yr to meet UTHSC-Hs employee
  health obligations to make up for the shortfall.

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Appendix A
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MHH Increase in BI coverage from FY08-FY09,
49MM to 75MM FY09 Premium reduced by
290K, due to scheduled risk control measures
(robust EMP, flood doors, training, etc.) and
risk based loss estimates.
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• - Losses Incurred but covered by UTS
• Comprehensive Property Protection Program
• The CPPP did not experience any losses from
  UTHSC-H
• - Losses incurred but covered by third party
• Metro Bus damage to the Ross Sterling Breezeway
  at
• MSB, 25,000
• - Retained Losses
• Hurricane Dolly estimated loss to UTHSC-H
  Brownsville,
• RAHC 125,000
• Eight of twelve retained losses were water
  related losses

Not inclusive of any recorded capital assets
inventory irregularities. For additional
information contact UTHSC-H Capital Assets
Management Estimate based on replacement cost
of damaged property
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Not inclusive of any recorded capital assets
inventory irregularities. For additional
information contact UTHSC-H Capital Assets
Management Estimate based on replacement cost
of damaged property