Risk and Insurance Benchmarking

1. Risk and Insurance Benchmarking A comparison: 2008 - 2010

3. Property/ISR trends 2004 - 2010

4. General & Products Liability • In terms of cost expressed as a percentage of University revenue (for all Australian respondents) there was a slight decrease from 2008 (0.030%) to 2010 (0.027%). • For Australian respondents there were nine claims reported in the 2008 survey but 28 in 2010. No claims were reported by NZ respondents for either years. • Deductibles for Australian respondents ranged between $2500 and $100000 in 2008 and $1500 and $100000 in 2010 with most $10000 or less. On average, however, they were greater in 2008 than 2010. • NZ excesses ranged between $1000 and $5000.

5. Professional Indemnity • Costs expressed as a percentage of total revenue on average remained relatively stable over the two surveys but within the various University categories there appeared considerable differences. • There were 11 claims (Australia) reported in the 2008 survey and 13 in 2010. NZ respondents reported three claims in 2008 but none in 2010. • Deductibles ranged between $5000 and $150000 (2008) and $5000 and $100000 in 2010 with the majority falling within the $5000 to $20000 range.

6. Medical Malpractice • Costs expressed as a percentage of total revenue fell from 0.022% to 0.019% over the period. • There were three claims reported in the 2008 survey but none in 2010. • Deductibles ranged between $5000 and $500000 in both survey periods. • No NZ respondents reported on this class of cover in either survey.

7. Clinical Trials • Not all Australian respondents were involved in clinical trials and no NZ respondent reported on this class of cover in either survey. • No claims were reported in either survey. • A valid comparison of costs between the two surveys could not be made.

8. Directors & Officers Liability • Costs expressed as a percentage of total revenue fell (for Australian respondents) from 0.01% to 0.008% and from 0.004% to 0.002% for NZ over the period. • In Australia, there were three claims reported in the 2008 survey and five in 2010. NZ respondents reported no claims in either survey. • Deductibles for D&O Liability ranged between $0 and $25000 (NZ $0/$50000) in 2008 and $0 and $5000 (NZ $0/$2500) in 2010. For Company Reimbursement, deductibles of between $5000 to $1M (NZ $2500/$5000) were reported for 2008 and $0 to $25000 (NZ $5000) for 2010.

9. Total premium trends 2004-2010

10. Total premium trends 2004-2010

11. Motor Vehicles

12. Miscellaneous Classes The most common of these are: • Travel, Personal Accident/Student PA – held by all Australian respondents over both survey periods • Contract works – taken out by only a few respondents • Fidelity – a few in 2008 but only one in 2010 • Crime – one only in 2008 but six in 2010 • Marine transit – the majority in both years • Employment Practices Liability, Statutory Liability, Supplementary Legal Expenses, Expat Medical, Mobile Plant and Marine Hull – rarely taken out

13. Broker usage - 2008-2010

14. Risk Management Teams

15. Risk Management Teams Top operational responsibilities – similar for both surveys: • Risk • Internal Audit • Business Continuity • Insurance • Compliance • Legal • Fraud • OHS • ERM • Crisis Management

16. Risk Management Processes 2008/10 Methodologies and Frameworks

17. Notes & Acknowledgements Notes: 1. Responses for each survey are not from the same set of institutions 2. Valid comparisons for NZ respondents were not always possible due to lack of data Acknowledgements: 1. Deakin University and its Risk Management Unit, in particular SnezanaHristovska, Karyn Hughes and Anita Amour 2. All respondents