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Oversight by SHERM

Safety, Health, Environment & Risk Management Risk Finance Summary for Workforce & Property Exposures: FY09 Experience and FY10 Projections.

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Oversight by SHERM

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  1. Safety, Health, Environment & Risk ManagementRisk Finance Summary for Workforce & Property Exposures: FY09 Experience and FY10 Projections

  2. UTHSC-H Employee Injury Reports and Workers’ Compensation Insurance Premium Trends, FY03 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 173 fewer reported injury events compared to FY 03 - $293,331 - $348,718 - $568,998 - $558,772 101 fewer injuries requiring medical compared to FY 03

  3. $227,000 in RAP reduction in FY09 as compared to peak of $436,100 in FY07

  4. 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 put in place in 2009 $80,000 in total premium savings since peak in FY06

  5. Total of $172,405 in dividend payments since SHERM oversight

  6. Workers’ Compensation Insurance Premium Adjustment for UTS Health Components Fiscal Years 2003 to 2010 (projected)(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 (0.08) UT MD Anderson Cancer Center (0.04)

  7. *MHH Increase in BI coverage from FY08-FY09, $49MM to $75MM

  8. Enhanced Risk Assessment & Control Services Services Provided • Institutional exposures objectively ranked by (1)value exposed to loss, (2)revenue, (3)expenses, and (4)total asset value • Targeted analysis on specific risk exposures and the development of risk control techniques to mitigate loss, provide assistance with installation, and implementation Microbiology and Molecular Genetics Assessed potential water damage due to ice machines and Millipore units Provided contract for and tour of hardened offsite temperature sensitive sample storage vendor Performed financial analysis for consideration of purchase of additional insurance to reduce the CPPP $250,000 deductible Gulf Coast Hemophilia Verified backup power Verified access control Surveyed physical vulnerability to products from breech of building envelope Performed financial analysis for consideration of purchase of additional insurance to reduce the CPPP $250,000 deductible Core Laboratories Ensured fire suppression system would not be inadvertently activated by high heat load generating equipment Potential sources of water intrusion identified impacting high energy robotics Performed financial analysis for consideration of purchase of additional insurance to reduce the CPPP $250,000 deductible

  9. Gauge Your Level of “Informed Risk”In an attempt to gauge the level of informed risk across campus, an online survey was circulated to manager and supervisory-level personnel via various institutional e-mail list servs for the period August 24 to September 9, 2009.Summarized below are the collective responses by percent from 138 respondents. The results indicate that certain opportunities to enhance community education and awareness exist, and will be pursed in FY10 to help further reduce the amount of retained losses experienced by the institution.

  10. Other Insurance Policies Managed by SHERM *Not Inclusive of current SHERM administrative processing fee of $0.46

  11. Other Insurance Policies Managed by SHERM *For Liability only at 1133 John Freeman Boulevard - The property was added 06/01/2006 premium pro-rata

  12. Projected Change in Cost of Risk Transfer

  13. Discussion Items • Despite continual reductions in WCI losses, rebate amounts continue to diminish. The Employee Health program is dependent upon these funds and will require an additional $70,000/yr to continue to operate. • The Informed Risk Survey highlighted three educational opportunities. • The UTHSC-H community requires education regarding the property insurance deductible of $250,000 to help increase loss prevention awareness. • Typical insurance provided by moving companies ($0.60/lb) is insufficient for research and clinical assets. • The importance of reporting all retained losses to RMI needs to be reinforced. • Since RMI began actively tracking and communicating loss mitigation strategies, in 2006, retained losses have slowly decreased. • Since SHERM began managing specific insurance lines in 2004, the UTHSC-H has experienced $4.1MM in total savings or an average of $820,000 per annum. Do other such opportunities exist within the other insurance lines? E.g. would UTHSC-H be better served if SHERM’s RMI program assumed more of an enterprise risk management posture?

  14. Appendix A

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