strima cost of risk study presentation

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STRIMA Cost of Risk Study Presentation Presented by: Steven P. Kahn, CPCU, ARM Aon Global Risk Consulting STRIMA Meeting, September 2011

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STRIMA Cost of Risk Study Presentation. Presented by: Steven P. Kahn, CPCU, ARM Aon Global Risk Consulting STRIMA Meeting, September 2011. List of Participants. List of States that Provided Loss Runs. Workers Compensation: States A, B, F, H, L, P, T, V, and W Tort Liability: - PowerPoint PPT Presentation

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Page 1: STRIMA Cost of Risk Study Presentation

STRIMA Cost of Risk Study Presentation

Presented by:

Steven P. Kahn, CPCU, ARM

Aon Global Risk Consulting

STRIMA Meeting, September 2011

Page 2: STRIMA Cost of Risk Study Presentation

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List of Participants

Alabama Arkansas

Arizona Colorado

Connecticut Florida

Georgia Louisiana

Maryland Missouri

Montana North Dakota

New Jersey Nevada

Oregon Tennessee

Texas Utah

Vermont Washington

Wisconsin West Virginia

Wyoming

Page 3: STRIMA Cost of Risk Study Presentation

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List of States that Provided Loss Runs

Workers Compensation:

States A, B, F, H, L, P, T, V, and W

Tort Liability:

States A, B, C, F, H, I, L, M, O, P, T, and W

Property:

States B, H, I, L, M, N, O, P, T, and W

Page 4: STRIMA Cost of Risk Study Presentation

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Reported Exposures for FY2010

Measure Value

Total Operating Expenditures $266.4 billion

Total Payroll $66.4 billion

Total Insured Values $299.2 billion

No. of Vehicles 233,065

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Reported Exposures Used for Trending (billions)

Fiscal Year

Total Operating Expenditures (Tort Liability)

Payroll (Workers Compensation)

Total Insured Value (Property Liability)

FY06 $137.4 $30.8 $83.4

FY07 140.3 32.9 92.9

FY08 148.5 34.9 105.5

FY09 156.2 35.4 113.9

FY10 164.1 35.3 119.7

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Cost of Risk – Percent of Operating Expenditures

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Core Cost of Risk

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Core Cost of Risk

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Workers Compensation Loss Rates (per $100 of payroll)

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Workers Compensation Frequency and Severity

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Property Loss Rates (per $100 of Total Insured Value)

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Tort Loss Rates (per $10,000 of Operating Expenditures)

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Tort Frequency and Severity

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Tort Large Losses

         

  Date of Total Total  

State Code Loss Paid Incurred Department

F 08/21/06 4,074,377   ST PATROL

O 08/18/07 270,576 1,170,576 DEPARTMENT OF COMMERCE, HERITAGE COMMISSION

B 02/19/06 1,360,000 1,360,000 Public Safety

F 01/04/06 5,399,397 ST SOCIAL & HEALTH SERVICES DEPT OF

F 01/04/06 1,771,217 ST SOCIAL & HEALTH SERVICES DEPT OF

F 01/26/06 1,201,933 ST SOCIAL & HEALTH SERVICES DEPT OF

F 03/08/06 4,748,985 ST TRANSPORTATION DEPT OF

F 04/25/06 2,274,357 ST TRANSPORTATION DEPT OF

F 09/07/06 4,030,591 ST CORRECTIONS DEPT OF

F 12/03/06 1,699,252 ST CORRECTIONS DEPT OF

F 12/03/06 1,749,184 ST CORRECTIONS DEPT OF

F 01/04/07 2,574,739 ST PATROL

F 03/07/07 5,625,437 ST SOCIAL & HEALTH SERVICES DEPT OF

F 05/02/07 2,435,715 ST TRANSPORTATION DEPT OF

F 10/28/07 8,297,467 ST TRANSPORTATION DEPT OF

F 01/08/08 7,590,519 ST TRANSPORTATION DEPT OF

F 05/28/08 2,186,160 ST SOCIAL & HEALTH SERVICES DEPT OF

F 06/26/08 4,279,513 ST CORRECTIONS DEPT OF

F 10/03/08 4,595,495 ST TRANSPORTATION DEPT OF

P 10/22/06 - 1,500,000 DEPARTMENT OF CORRECTIONS

M 01/07/09 24,775 5,024,775 Family Services

         

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Property Large Losses

           Date of Total Total  

State Loss Paid Incurred Department N 04/09/09 3,562,610 3,562,610 Community College N 10/29/09 2,863,128 4,200,824 University-Technical Branch N 04/28/11 750,000 3,000,000 Technical College H 08/01/06 6,452,466 6,452,466 Inactive Location H 02/13/07 1,243,350 1,243,350 Corrections H 03/07/07 481,556 1,500,000 Personnel and Administration H 03/30/07 5,163,797 5,163,797 Transportation H 02/08/08 1,381,909 1,381,909 Higher Education H 05/22/08 1,297,128 1,297,128 Transportation T 04/07/06 9,199,864 Board of Regents T 11/17/06 7,000,000 University T 07/15/08 8,000,000 n/a T 12/29/09 1,425,000 University T 05/02/10 20,000,000 Various L 09/23/05 4,146,771 Department of Criminal Justice L 09/23/05 8,645,196 Department of Criminal Justice L 09/24/05 1,756,763 Institute of Technology L 09/23/06 1,776,696 Department of Criminal Justice L 07/24/08 3,742,043 State Technical College System L 09/13/08 10,000,000 University P 07/27/06 1,545,320 1,545,320 University - SHOPS-GENL MAINTENANCE P 04/16/08 5,050,855 5,050,855 University-WHITEWATER P 06/12/08 5,305,281 5,305,281 University P 06/25/09 1,246,807 1,246,807 University M 05/26/10 989,739 1,141,375 Parks & Cultural Resources          

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Workers Compensation Large Losses

         

  Date of Total Total  

State Loss Paid Incurred Department

H 10/23/06 1,199,672 1,199,672 Department Of Highways

H 01/15/08 581,320 1,695,613 Department Of Public Safety

H 05/19/08 362,862 1,322,951 Department Of Corrections

W 11/18/05 1,363,766 1,363,766 Department of transportation

V 01/16/08 1,175,126 1,597,227 PUBLIC SAFETY AND CORRECTIONAL SERVICES

V 03/23/07 928,764 1,151,277 HIGHER EDUCATION (NON UMS)

B 02/25/08 144,426 1,507,379 Highway Patrol

B 05/26/09 246,646 1,791,417 Correct Center

T 01/16/06 1,109,485 1,279,362 DEPARTMENT OF CORRECTION

T 12/15/06 1,064,741 1,310,857 BOARD OF REGENTS

A 01/01/06 116,254 1,575,744 n/a

A 05/01/06 537,576 2,454,123 n/a