© 2012 ARTHUR J. GALLAGHER & CO. SORM Statewide Property Insurance Program Overview PRESENTED BY: Michelle Tooley and Chris Connelly, ARM-P Area Senior

© 2012 ARTHUR J. GALLAGHER & CO.

SORM Statewide Property Insurance Program Overview

PRESENTED BY: Michelle Tooley and

Chris Connelly, ARM-P

Area Senior Vice President

© 2012 ARTHUR J. GALLAGHER & CO.© 2012 ARTHUR J. GALLAGHER & CO.

Today’s agenda• Purpose of Property Insurance• Overview of SORM State-wide Property Insurance

Program• Insured Risks• Risk Assessment for Natural Hazards (CatNet)• Why obtain a quote• How will you manage your risk


•Provides catastrophic protection » Assume small risks» Transfer large risks

•Aids in budget stability» Large losses transferred to

insurers

Purpose of Property Insurance


•Designed to provide cost-effective rates and broad coverage to all agencies» Economies of Scale» Broadest policy terms available in market» Stability

•Tailored specifically to risks faced by SORM Agencies

Overview of SORM State-wide Property Insurance Program


•Fire•Frozen Pipes & Water Damage•Hail•Flood•Windstorm (tornado, hurricane)•Terrorist Events•Arson•Accidental Breakdown of Equipment

Examples of Risks Insured by Property Program


Services Provided •Loss Control Inspections•Appraisals•Thermographic Heat Testing•TOGA – Oil Sample Testing•Boiler Inspections•Architectural Reviews of New Structures•24 Hour / 360 days Claims Contact


List of Current Participants

Midwestern State University

Teacher Retirement System

Texas Southern University

Texas Historical Commission

State Office of Risk Management

Department of Public Safety

Department of Motor Vehicles

Sixth Court of Appeals

Texas State Preservation Board

Office of Court Administration

Texas Board of Nursing

Texas Board of Law Examiners

Public Utilities Commission

Credit Union Department

TX Board of Professional Engineering

Texas Juvenile Justice Department

Texas Parks & Wildlife Department

Adjutant General's Office

General Land Office

Texas State Technical College

Department of Banking

Department of State Health Services

University of North Texas

Stephen F. Austin University

Texas Public Finance Authority

University of HoustonTexas Dept. of Housing & Community Affairs


FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY140

5

10

15

20

25

30

Property Participants: Policy Period 4/30/2006 -

4/30/2015


FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Annual Premium: Policy Period 4/30/2006 -

4/30/2015


Reserves on Twelve Open Property Claims from 2012 - 2014

Water Damage, $1,893,774, 13%

Fire Damage, $980,989, 6%

Windstorm & Hail, $12,034,930, 81%

$14,909,694


Twenty-Three Closed Claim Paymentsafter Deductibles 2008 - 2014

Water Damage; 3239262.73; 7%

Fire Damage; 1934895.22; 4%

Windstorm & Hail; 2531792.65; 6%

Hurricane; 37587339.91; 82%

Equipment Breakdown; 434255; 1%

$42,812,209


Benefits of Obtaining a Quote?• Requires collection and valuation of state owned assets• Identify the exposures your state owned assets have• Identify the cost to transfer the risk• Determine if it is financially feasible for your agency• If not, explain how your agency will retain the risk and pay for

losses.


Statute

Texas state agencies are required to report to the Director, State Office of Risk Management detailed information on existing and potential exposure to loss, including property location and values, descriptions of agency operations, and estimates of maximum probable and maximum possible losses by category of risk. Texas Labor Code § 412.053


• SORM Maps All Agency Exposure Data» Provides overview of natural hazards

FloodHurricaneTornadoHail

• Assists in Identifying Catastrophic Exposures• Determines Geographic Concentration of Values

SORM Assistance with Risk Assessment


•Provide SORM with feedback on how you are managing the identified exposures at the different locations

•Report to the legislature – State Insurable Asset Study 2011 / 2013

Managing your Risks


How to Obtain More Information

Sally BalderasSORM Insurance Manager - Property

[email protected](512) 936 – 1483

www.sorm.state.tx.us

mailto:[email protected]

Documents

© 2012 ARTHUR J. GALLAGHER & CO. SORM Statewide Property Insurance Program Overview PRESENTED BY: Michelle Tooley and Chris Connelly, ARM-P Area Senior