Dallas/Fort Worth International Airport Risk Management

Transcription

1 Dallas/Fort Worth International Airport Risk Management ACI-NA 14 th Annual Risk Management Conference Concurrent Session 1B January 10, 2013 Alphabet Soup: OCIP s, CCIP s, ROCIP s What Does it All Mean?

2 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 Rolling Owner Controlled Insurance Program (R/OCIP) DFW Business Strategy Purpose Comprehensive wrap up program 7 Year bound insurance coverage Rolling feature for future capital projects Objectives Financial Savings Site Control / Improved Safety Broader Coverage Increased Opportunities for M/WBE s 1

3 Rolling Owner Controlled Insurance Program (R/OCIP) DFW Business Strategy Market Influences Construction Value PCIP ROCIP $ 2,201,312,949 $ 2,100,000,000 Contractor Insurance Rates by Trade WC Claims (Max weekly benefits) $531 $766 Medical Costs Higher overall in 2000 Primary Market Influences Stabilized from Medical cost containment +10% September 11, Recession Derivative/mortgage crisis AIG/other insurers; Increases in insurer reinsurance/administration costs Hurricane Events (Katrina, Rita, Ike and Gustav) 2

4 Rolling Owner Controlled Insurance Program (R/OCIP) DFW Business Strategy - Cost Comparisons ROCIP PCIP TRIP (TRIP & NON TRIP) CONSTRUCTION VALUE: $2,201,312,949 $1,500,000,000 $2,100,000,000 DEDUCTIBLES: $500,000 $250,000 $250,000 WC $4,224,139 $5,364,269 $7,509,977 GL ($2M/$4M/$4M) $1,347,360 $4,697,622 $6,576,671 Loss Fund & Claims Expenses $18,189,576 $14,040,000 $19,656,000 Excess Liability ($200M) $1,696,786 $2,200,000 $3,100,000 Builder s Risk $4,809,848 $5,697,500 $4,006,500 Professional Liability $5,887,573 N/A N/A Pollution Liability $838,613 $1,030,465 $1,288,081 Total $36,993,895 $33,029,856 $42,137,229 SECURITY & COLLATERAL: Collateral $2,000,000 $3,000,000 $4,200,000 Escrow $250,000 $234,000 $234,000 TOTAL PROGRAM COSTS: $39,243,895 $36,263,856 $46,571,229 5 Year 7 Year 3

5 Rolling Owner Controlled Insurance Program (R/OCIP) DFW Business Strategy - Cost Impact Year Premium (Fixed Cost) Loss Fund (Variable Cost) Escrow Collateral Fees TOTAL 2011 $5,782,228 $2,565,600 $236,000* $8,583, $2,848,833 $1,965,600 $4,500** $4,818,933 Funding Request 2013 $4,836,273 $1,965,600 $9,125** $6,810, $3,632,273 $1,965,600 TBD $7,972,873,est $20,213, $3,329,873 $2,948,400 ** TBD $6,278,273, est $1,109,269 $2,948,400 ** N/A $4,057, $471,240 $2,948,400 ** N/A $3,419, $471,240 $2,948,400 ** N/A $3,419,640 TOTALS: $ 22,481,229 $ 20,256,000 $ 45,361,854 $ M * Represents escrow of $234,000 + estimated LOC bank fee of $2,000 ** Represents estimated LOC bank fee for year 2 and 3 *** $4.2 million cash can be paid in two installments and will earn interest 4

6 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 DFW R/OCIP Program Components Administration Insurance Coverage Contractors Enrollment Site Badge Program Screening Safety Training Dedicated Safety Training Facility Mandatory two-day training Supervisor Training Tailored Training Modules Bilingual Sessions 5

7 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 DFW R/OCIP Program Components Claims Management On-site Investigations Medical Case Management Return to Work Program Capital Assistance/Bonding Underwriting Assessment Education sessions New Certificate of Completion Pilot program 6

8 DFW R/OCIP - Administration Comprehensive Wrap Up - Insurance Coverage ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 Statutory $2B $200M Excess Liability $2M/$4M/ $4M General Liability $1M Employer s Liability Workers Compensation $50M Contractor s Pollution Builder s Risk $250k Deductible $250k Deductible $250k Deductible $25k Deductible $250k Deductible 7

9 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 DFW R/OCIP - Administration Contractors Enrolled 378 YTD 886 Contracts Screening 3,360 Total Employee Screenings Total Contractors Enrolled ,200 Failed Drug Tests Failed Background Checks Total Passed BARC MBJ3 8

10 DFW R/OCIP - Administration YTD 2012 R/OCIP Badges: 3,360 EOY 2011 Badge Issuance: 1,895 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 Nov-12 Oct-12 Sep-12 Aug-12 Jul-12 Jun-12 May-12 Apr-12 Mar-12 Feb-12 Jan Day MBJ BARC

11 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 DFW R/OCIP - Safety Training YTD ,520 Employees Trained EOY ,388 Construction Employees Mandatory 2 Day Safety Training English/Spanish Construction Language Basics Supervisor Training - 3 rd Day Job Hazard Analysis Pre-Task Planning Supervisory/Leadership Skills 451 EOY 2011 English 1444 Spanish 10

12 DFW R/OCIP - Safety Training Monthly Safety Training Activity, 2012 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan ADE One Day Spanish English 11

13 DFW R/OCIP - Capital Assistance/Bonding Program YTD 241 Firms Educational/Underwriting Support Financial Services Bonding Application Assistance Project Budgets Developing Business Plans ACI-NA Risk Conference, DFW R/OCIP January 10, Classes Firms Attendees Bond Packages 31 Bond Lines 4 Insurance Assistance 13 Capital/Finance Assistance 5 Working Capital Lines 1 Pilot Program

14 ACI-NA Risk Conference, DFW R/OCIP January 10, 2013 DFW R/OCIP FY2012 Dashboard Contractor Enrollments ,807 8,448 5,103 Apr- May- Jun Medical Only, 1 33,048 Man Hours 829,591 50,963 Jul- Aug- Sep Safety Training 5,132 Restricted 81,566 73,787 Work, 4 Oct- Nov- Dec Total Paids $170,276 Man Hours 94,737 Capital/Surety Training 241 Lost Time, 1 117,047 GL 10 89,431 Final Badges R/OCIP ,281 Jan- Feb- Mar- Apr- May- Jun WC 53 Jul ,373 Aug , , , ,000 80,000 60,000 40,000 20, BARC Enrollments Claims Dollars Paid: $170,276 Contractors ROCIP Badges Issued 984 Total R/OCIP Claims MBJ3 Enrollments FY 2011 FY 2012 Total Work Comp GL 13

15 Dallas/Fort Worth International Airport Risk Management ACI-NA 14 th Annual Risk Management Conference Concurrent Session 1B January 10, 2013 Alphabet Soup: OCIP s, CCIP s, ROCIP s What Does it All Mean?