From
Lisa Norris, Human Resources Director
Title
Quarterly Risk Fund Review
Presenter
Ashley Land, Human Resources Manager
Recommended Action
Review
Analysis
Risk Fund (Attachment, page 1): The Risk fund continues to run fairly well, but we are in storm season so we will remain cautiously optimistic. Revenues are doing well, especially with the work from our City Attorney's office and staff who have collected $115,652 in subrogration recoveries s far this year! This exceeds total collections for fiscal year 2015-2016. On the expense side, we were hit pretty hard with Property premium increases (row 36, column 3) due to losses over the past several years resultant from flooding, storms and ice. However, we are running well as we reach the end of the 2nd quarter (column 3) for Auto Losses (row 31), Liability losses (row 34), Property losses (row 37) and current year Workers Compensation losses (row 39). As we go over the insurance fund, our large claimant hit 1,411,396 in plan year 2016. As a result, we are transferring $1,011,396 from Risk Fund Stoploss reserves (row 60, highlighted in yellow) to the Insurance Fund. This was our communicated practice to reimburse (following the close of quarter 2), any amount over $400,000 in paid claims per claimant which is the self-imposed stoploss deductible.
Liability and Property (Attachment pages 2-3):
Liability and Auto-Property costs and number of claims filed for the second quarter of fiscal year 2017 are down, as noted by the green arrows, as compared to the prior year! On Slide 3, most of the damage noted so far this year is from wind/storms.
Funds Recovered (Attachment, page 4):
As mentioned earlier, our City Attorney's office staff are killing it in collections! Nice work as they have brought in $115,652 so far this year in the first 6 months.
Workers Compensation (Attachment pages 5-7): Overall, our total workers compensation number of occurences and costs per claim have decreased from the prior year as reflected on slide 5. As a result, on slide 6 you can also see cumulative costs are also down for both paid claims and reserved amounts. Results so far are very positive as indicated on slide 7 showing incurred costs are down by 51%, paid costs are down by 40% and reserved costs have decreased by 58%. Let's hope this trend continues through year-end.
Financial Consideration
None. Information only.