Annual Policy premium reduction from FY07 to FY08 of $220,280

1. Safety, Health, Environment & Risk ManagementFY07 Risk Finance Summary for Work Force & Property Insurance Lines

3. $570,000 in premium savings UTHSC-H Employee Injury Reports and Worker’s Compensation Insurance Premium Trends, FY01 to 08Note: insurance premium influenced predominantly by market conditions, employee census, employee payroll, and injury frequency and severity Oversight by SHERM 104 fewer injuries reported 72 fewer injuries needing medical care Annual Policy premium reduction from FY07 to FY08 of $220,280

4. $167,000 in RAP Rebate Reduction

5. UTHSC-H Residents Injury Reports and Worker’s Compensation Insurance Premium Trends, FY01 to 08Note: insurance premium influenced predominantly by market conditions, employee census, employee payroll, and injury frequency and severity Oversight by SHERM $68,000 in premium savings Annual policy premium reduction from FY07 to FY08 of $36,000

6. 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) Oversight by SHERM UT Health Center Tyler (0.17) UT Medical Branch Galveston (0.16) UT HSC San Antonio (0.13) UT Southwestern Dallas (0.13) UT HSC Houston (0.09) UT MD Anderson Cancer Center (0.07)

7. Oversight by SHERM

8. Possible Range of Annual WCI Premium (Assuming no change in population, payroll, or other influencing factors)

9. 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)

10. 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%)

11. 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 • Losses incurred but covered by 3rd party RRF Fire $10-$14 Million Potential retention of $1-$3M • Retained losses Water leak in MSI $210,000 Theft total $65,000 (predominantly laptops) Electrical power disruption no implicated in any losses Other losses $65,000 Retained Property Loss by Peril ( Total $645,895)*

12. 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.

13. Other Policies SHERM SHERM *Not Inclusive of current SHERM administrative processing fee of $0.46

14. 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

15. SHERM’s Total Cost of Risk Transfer *NFIP places policies on individual locations, such as UT Apts *Paid out of the Named Windstorm & 100-Yr Flood

16. 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.

17. Appendix A