Changing Environment for Public Sector Risk Management and Captives

Transcription

1 Changing Environment for Public Sector Risk Management and Captives John Didion, Captive Insurance for Public Agencies, Ltd. Elizabeth Cherry, University of Washington Craig Watanabe, Strategic Risk Solutions

2 Alliance of Schools for Cooperative Insurance Programs (ASCIP) Formed in 1980 as a purchasing pool for Southern California school districts Became a statewide risk sharing pool in th Largest Public Entity Risk Pool in the United States 140 member K-12, community college and charter schools

3 Alliance of Schools for Cooperative Insurance Programs (ASCIP) Property Liability Provides: Workers Compensation Health Benefits Construction Insurance

4 Captive Insurance for Public Agencies (CIPA) Formed in Hawaii in 2005 Focuses on affiliated risks Alternative strategy to provide coverage for risks that are associated with, but not exclusively, part of the public educational space Initial product offering: construction wrap-up insurance

5 School Construction in California Property tax initiative (Prop. 13) in 1978 limited local school district ability to pass local construction bonds (66.67% approval required) Responsibility for school construction shifted from local districts to statewide bonds Competitive process for state bond funds led to pent up demand for facility development and renovation

6 School Construction in California, cont. Reform initiative (Prop. 39) in 2000 allowed school districts to approve local construction bonds with 55% vote Significant increase in local funds for school construction Subsequent legislation enabled local agencies to utilize Owner Controlled Insurance Programs (OCIPs)

7 Student Accident/Injury Coverage Construction is most inherently hazardous activity on campus OCIP allows for coordination of coverage Minimizes coverage disputes and litigation expense

8 OCIP Design Rolling OCIP with captive used to fund deductible reimbursement No pooling: 100% risk transfer Components: Workers Compensation Employers Liability General Liability (10 year Completed Operations) Builders Risk Pollution Owners Protective Professional Indemnity (OPPI)

9 Student Accident/Injury Coverage Out-of-pocket reimbursement coverage for school related injuries No fault coverage Includes athletic activities Promotes goodwill & reduces litigation Over 950,000 students covered

10 Potential Growth Areas Ancillary organizations, e.g. PTA, Booster Clubs, Tenant Users Pool administration services Loss Control and Risk Consulting

11 The Changing Environment for Public Sector Risk Management and Captives John Didion, Captive Insurance for Public Agencies, Ltd. Elizabeth Cherry, University of Washington Craig Watanabe, Strategic Risk Solutions 3 campuses Public access Respond 42,000 employees Education healthcare innovation Research excellence 56,000 students Service Welcome to the University of Washington University of Washington 1

12 University of Washington 2

13 Conservatively funded Allocation of premium to selfsustaining units to incentivize loss control Plan for funding deficits Central administration controls excess placement, claim and litigation management, and service contracts University of Washington 3

14 Medical Professional in-house claim and litigation management General Liability Outreach and Education Auto Liability Mandatory Driver Training Employment Practices Liability UCIRO and annual EPL Summit Industry University of Washington Reported Claims Per $1 Million Payroll University of Washington 4

15 Excuse Me? University of Washington 5

16 University of Washington 6

17 Patient Safety Innovations Program Information Privacy and Security Coverage Title IX Compliance Services Rules Subcommittee Identify and Assess Mitigate and Monitor Report Step 1: Audit/Resilience interviews and discussion of potential topics with leadership Step 2: Select topics with Compliance Working Committee, Compliance Steering Committee and subject matter experts Step 5: Compliance Steering Committee consideration of under-mitigated and unmitigatable risks Under-mitigated risks Leadership Step 6: Leadership presents Annual Report to the Board of Regents on Institutional Resilience Step 3: Compliance Assessment and Risk Interviews Step 4: Review Team Operational Strategic Financial Compliance Internal Audit Plan Policy Management Adequately mitigated risks University of Washington 7

18 Insurance Self Insurance + Litigation Management + Claim Management + Complaint Management + Compliance Management + Resilience Exposure Reinsurance Premium Rate University of Washington 8

19 Federal funding State funding Healthcare Cyber liability Social media University of Washington 9