Financial Administrator Development Program

Transcription

1 Financial Administrator Development Program Risk Management and Workers Compensation Matt McCabe Director Risk Management & Insurance Tony Lemke Senior HR Professional Human Resources January 28, 2016

2 What is Risk Management? The practice of identifying and analyzing loss exposures and taking steps to minimize the financial impact of the risks they impose Options for dealing with risks Transfer = Insurance or Contract Retain = Self-Insurance Control = Prevention/Reduction Avoid = Do not proceed 2

3 Risk Management - Areas of Concentration Property / Casualty Insurance Self-insurance Programs Review of Contractual Agreements Loss Prevention / Reduction Consultation with outside entities, MSU operating units, colleges, faculty and staff Claims handling 3

4 How do you reduce the amount of damage from fires? Storage Configuration Sprinklers 4

5 Physical Flood Risk Loss Prevention / Reduction 5

6 HESCO Barriers MSU has purchased HESCO Barriers for flood protection. HESCO barriers are durable, and require significantly less materials and man hours to install vs. sandbags 6

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9 Examples of consultations Volunteer activities (who are they and what are the duties?) Equipment loans (expensive items) Driving records (what is acceptable?) Safety concerns (danger to people or property) Insurance questions (technical questions requiring research) Activity proposals (you are going to do what?) Contract terms (nature of the agreement, indemnification, insurance) Crossovers (e.g. Human Resources, General Counsel) 9

10 Nature of Consultations Claims 308 Exposure Reviews 288 MSU Policy Interpretation 140 International 90 Other 61 Driving Issues 16 Certificates of Insurance 101 Contract Reviews 270 Insurance coverage 270 Campus Activity Approvals Total: 1,583

11 Self-Insured Levels Increased to Realize Lowest Cost for University $5 million $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 $3 million $2 million $2 million $2 million $1 million $100k $250k $100k $100k $200k $225k $0 $225k 2000 Self-Insured Level 2015 Self-Insured Level 11

12 Insurance / Self Insurance/ Loss Prevention Other Self- Insurance $600,000 Loss Prevention $325,310 General/ Auto Liability Insurance $246,413 Other Insurance $753,769 Property Insurance $1,292,116 Medical Malpractice Self-Insurance $1,611,394 Total: $4,829,002

13 Breakdown of Other Insurance Aviation $14,000 International Health & Evacuation $156,401 Watercraft $10,646 Foreign Auto PD $12,148 Foreign Liablility $10,671 Flood $73,121 Athletic Accident $163,520 Auto Pollution $8,167 Accident- Camps $13,160 Athletic Auto $32,054 Crime $21,325 Excess Work Comp $112,570 Educators Legal Liablilty $67,081 Day Care $1,447 Fine Arts $47,367 Other States Work Comp $10,061 Total: $753,769

14 Property Insurance Premiums $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 September 11th Hurricane Katrina $ embership Credit: ($111,145) ($125,880) ($119,758) ($148,830) ($228,128) ($233,975) ($234,000) ($223,427) Comments: 1. If rates stay constant, premiums still increase over time as replacement cost values increase 2. Membership credits depend on the financial results of the property insurer

15 $6,000,000 Total Risk Management Costs $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Self-Insurance / Loss Prevention Insurance Total Risk Management Costs $0

16 Questions? Website: Phone: (517) Office: Olds Hall, Room W. Circle Drive East Lansing, MI

17 Overview of MSU Workers Compensation Process Self-insured; self administered Eligibility: who is and isn t covered Incident occurs Assess need for medical treatment Complete Authorization To Invoice MSU Complete Report of Claimed Occupational Injury or Illness form 17

18 Overview of MSU Workers Compensation Process Outcome of medical treatment - Return to work - Return to work with restrictions - No return WC pays medical expenses WC processes loss time WC makes adjustments in SAP 18

19 MSU Workers Compensation Costs 2.2 Million for FY

20 1,001 Claims for Calendar Year

21 Type Of Claims For Calendar Year 2015 Indemnity First Aid Medical 21

22 Total Cost for Calendar Year

23 Cost and Claims Calendar Year 23

24 Number of Claims Per Body Part(s) For Calendar Year 2012, 2013,

25 Average Cost Per Body Part(s) Calendar Year 2012, 2013,

26 Questions? Website: Phone: (517) Office: Nisbet Bldg 1407 S Harrison, Suite 110 East Lansing, MI

27 Discussion Topic 2014 Car Accident in Michigan Involved 5 employees who were traveling for a work related project Necessary coordination between WC and RM offices Total Costs to Date - $504,855 Medical Costs - $347,337 Lost Time - $49,362 ($38,023 WC, $11,339 Auto No-Fault) Physical Damage To Vehicle- $13,500 Department paid for personal items 27

28 Top Six Best Practices 1. Go to our websites or contact our offices when you need assistance 2. Submit reports and records in a timely matter 3. See Something, Say Something! 4. Promote injured employees return to work 5. Make safety a priority 6. Ask questions if you don t know 28