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Home My WebLink AboutRESPONSE - RFP - 7561 INSURANCEI • • • City of Fort Collins, Colorado • • What is most important when partnering with an insurance broker? • Local • • • Dedicated to Public Sector • In Knowledgeable in addressing the unique market environment in • CO (and throughout the U.S.) j . Traditional programs to alternative risk financing programs • . Familiar with tort statutes and other applicable laws • • . Loss trends and benchmarking • . Total cost of risk (TCOR) • • • • Client Focused Culture • • . Services, expertise, and responsiveness • • Relationship focused • . A trusted business advisor • . Committed to highest professional and ethical standards • • • GGallagher PUBLIC SECTOR 10 • • • • • • • rit,A of Fort Collins, Colorado • • What is most important when partnering with an insurance broker? '• Experience • • . City of Aurora, Colorado M Denver Water •N City of Boulder, Colorado 0 Denver Regional Council of Governments • 0 City of Colorado Springs, Colorado m Denver International Airport • . City of Fort Collins, Colorado M Fitzsimons Redevelopment Authority • . City of Thornton, Colorado 0 Roaring Fork Transportation Authority •0 City of Littleton, Colorado . Colorado Counties Casualty and Property • 0 City of Portland, Oregon Pool (54 Counties) • . City of Bellevue, Washington ■ County Workers' Compensation Pool •M '• City of Chandler, Arizona (Colorado) (52 Counties) • . City of Avondale, Arizona • . Adams County, Colorado •0 Boulder County, Colorado • 0 Larimer County, Colorado • . Pitkin County, Colorado • 0 Weld County, Colorado Maricopa County, Arizona • Gallagher PUBLIC sLcrou 11 • • • • City of Fort Collins, Colorado • • • • Broker Services • • Marketing, Market Access (Direct Basis) • • • Program Design including Analytics• • • Contract Administration Services • • Risk Management Consulting • Semi nars/Webinars • • Day to Day Account Management Services • • • Professional Standards • • Minimum Requirements • • Checklists • File Audits • • Service Standards • • • • • 4G Gallagher mnicSrcrOR 12 • • • • • • City of Fort Collins Colorado Service Framework Adenin stration/3tawardship a Osyto•day service a Policy issuance and maintenance a Technical advice --Contract Reviews a Periodic meetings a Claims management a Insurance manual Vcartl ficates of Insurance a Monitor insurer security Marketing and Placement Develop market enpagemenl st ratepy Underwriter presentations Review initial insurer terms Develop placement strategy 4 Program Strettpy in Review Insurance market conditions a Review Insurer selection a Review program structure jilmits, deductible, program options) Risk Review g Risk workshop Risk management recommendations �= Business Interruption exposurr analysis a Cost of risk analysiVbenchmarking 4 Clap Analysis Insurance GUVe►aQe fNieYV i Insured/unlnsured risk reglster cntated it Clalms Rwiwv and Metsnstlon Ansiysis a Ouarterly claims review r Deductible analysis a Risk appetite/tolerance discussion Gallagher PUBLIC SECTOR 13 • • City of Fort Collins, Colorado • • • • Claim Advocacy Services • • Local and Regional Resources • • Specific experience to address issues • • • Coverage Advocacy • Attorneys, Large Property Specialists, Casualty and Workers' Compensation Advocates • Claim Reviews, Claim Audits • • • • Seminars/Workshops • • • • National Resources • • High -Profile Claims Advocacy i • • GGallagher PUBLIC SECI UN 14 • • • • • • City of Fort Collins, Colorado • • Risk Control Services • i Local, Regional and National Resources • • • Property • • Casualty • Workers' Compensation • • Risk Management Toolbox • Training Programs • • Analytics • • • Newsletters • Webinar Programs • Surveys, Policy Reviews, Assessments, Audits, • Special Studies • E-Learning Tools, Video Library, etc. • GGallagher PUBLIC Sect off is • • • • City of Fort Collins, Colorado • • Benefits to the City • . We know the City operations, customer service philosophy, mission and • values. • Trusted Business Advisor • • . Our public sector service team focuses on securing creative, cost • effective risk financing solutions with experts who help you avoid and • minimize retained losses. • • We save you money • . We help our clients respond to the questions and evolving risks • associated with public sector risks. • • We keep you informed • . Our best -in -class service standards and Niche Practice Group • collaboration streamlines communication and helps to eliminate • • surprises. • We save you time • . We understand public sector. We invest in public sector resources • • GGallagher PUBLIC SECTOR 16 • • • • • City of Fort Collins, Colorado • • • • • • Thank you for your time. • • Q & A • • • • • • • • • • • • 4G- Gallagher PUBLIC SECTOR 17 • • ERM Consulting for AJG Clients DOROTHY M GJERDRUM, ARM-P CIRM DECEMBER 6. 2013 Overview of Services • Our approach to ERM • We help our clients take an expanded view of risk and implement a sustainable, broad - based approach to managing risk • We educate all stakeholders on the intent of ERM, benefits & critical components • We understand all ERM models and can help tailor an implementation plan unique to your organizational culture City Government —Home Ruled 6 District Council members and Mayor Utility Services Financial Services Employee Communication Services Police Services Planning, Development and Community & Operations Services Policy & Performance, Sustainability Services •1MEN11• $488,600,000 Budget $481 .155.534 TIV • Vehicles/Mobile Equipment 143,986 Population $89,646,450 Payroll 2,282 Employees Cyber Risk including Personal Identifiable Information Parks, Recreation areas Utilities (electric, water, wastewater, and storm water) Strategic Operational Financial Compliance Reputational Technology Why should we take a broader approach to risk? • Insurance companies estimate that only 20-30% of all risks are insurable • Global interconnectedness forces us to think more broadly — for example: oPandemic flu o Cyber attacks o World economy & supply chain risks • Now more than ever, we need all stakeholders to be risk aware The Intent of ERM • To manage risk better to support opportunities • To identify, assess and prepare for what could go wrong • To focus on what's most important to the entity and its stakeholders — and link key risks to goals & objectives Benefits of ERM The benefits are both external and internal to the organization • Establishes links between key initiatives, risks and planning Strategic • Better planning for resource requirements Planning • Managing key risks assures a higher likelihood of success Understanding • Reduces uncertainty Risk Exposures • Improves response time and resilience • Reduces disruptions to on -going operations Decision More thorough and holistic decision making Making Improves planning, budgeting & allocation of resources • Reduces wasteful spending on low -risk exposures • Improves credit agency ratings Perception & • Enhances value by minimizing losses and maximizing Reputation opportunities • Reduces chance of operational "surprises" & unpreparedness • Improves accountability and awareness of risks Work Culture Strengthens work culture and resilience • Helps focus on what really matters to the organization Implementation Options After discussion of the context of your operations, the reasons that you are interested in implementing ERM and identifying your stakeholders, we'll design an implementation strategy that fits your organization. Examples from current clients follow. Sample Implementation Plan Project Plan & Risk Education Risk Analysis & Risk Treatment & Communication & Framerork Identification Evaluation Communication Consultation Monitoring & Revier Begin discussion of Organize Risk Advisory Prioritize risks by level of Identify risk owners & Develop dashboard Utilize existing goals, context, drivers, Committee & meeting threatfopportunity and assign risks reporting tools for processes & reporting organizational structure schedule likelihood management systems? Develop draft plan and Identify internal & Identify risk categories Risk owners identify Communicate key Report to audit? timeline for ERM external context, and organize risks current risk controls - activities & milestones project; develop stakeholders, principles are they enough? Identify key decision- Discuss roles & Create the risk register, Meet with risk owners to Utilize internal audit to ERM Advisory Comm makers; develop talking responsibilities, goals & risk map, data reports - identify mitigation validate processes? monitors overall points links to strategic ERM Adv Comm strategies & benchmarks process & recommends initiatives reviews & approves changes as needed Create the ERM Begin the risk Key risks are identified Develop & provide tools Incorporate risk into Link results to strategic Advisory Committee identification process: and reported to the to ALL employees to budgeting, job initiatives & achievement interviews, surveys, appropriate audience help them assess & responsibilities & of goals workshops, existing data manage risk strategic planning? Discuss barriers and Begin to educate Training on risk process Risk mgmt provides Track mitigation efforts Work toward integrating brainstorm possible employees & & language for risk consulting & leadership & effects upon risks risk identification & solutions stakeholders - develop a owners & appropriate assessment into common risk language others organizational strategy Identify Risk Champions Meet with key decision- Report to & consult with Report to & consult with Report to & consult with Report to & consult with & related initiatives makers and Risk Risk Champions & key Risk Champions & key Risk Champions & key Risk Champions & key Champions decision -makers decision -makers decision -makers decision -makers Plan for data Build, purchase or plan Share reports on the management & for data management process with appropriate communication stakeholders Sample Four -Year Implementation Plan Year 1 • Inventory & assess existing risk management program & activities • Develop ERM framework • ERM Oversight Committee • Policies & procedures • Implementation plan • Establish lexicon & tools • Plan for data management, education & training • Begin first risk assessment process • Monitor and review implementation process • Report on implementation Year 2 • Train risk owners; implement risk treatment plans • Monitor and review the management of risks (oversight committee) • Develop education & marketing material for key stakeholders • Initiate additional risk assessment processes as appropriate • Review framework for effectiveness • Report on implementation Sample Four -Year Implementation Plan Year 3 • Develop tools for assessing risks by groups or individuals • Roll out additional risk assessment processes • Integrate accountability for risks into job descriptions • Monitor and review management of risks • Review and improve risk management processes and framework • Update education & marketing material • Report on implementation Year 4 • Refresh risk advisory committee • Integrate risk management into strategic planning processes • Monitor and review management of risks • Review and improve risk management processes and framework • Update education & marketing material • Report on implementation ERM Engagements Dorothy Gjerdrum, CIRM, ARM-P • US Technical Advisory Group to ISO 31000 and ISO 31004 and international work group — Chair and designated expert • Contributor & presenter, PRIMA Institute • Speaker — RIMS, PRIMA, URMIA, ASBO, NACUA • Author — School Business Affairs "The New Language or Risk," October 2013 Review of existing �pro program: • UC System • UVM Implementations: • City -County of San Francisco • Johnson County Community College (KS) • Maricopa County Community College District (AZ) • UNC Charlotte • NM Assoc of Counties What Our Clients Say It was immediately clear from the written response to the RFP that Dorothy possessed an impressive knowledge of, and passion for, ERM. Both of these qualities became even more evident during the RFP interview process and extended into our working relationship with Dorothy... Her knowledge and enthusiasm for ERM are strongly supported by her communication skills, prompt follow-through on tasks and assignments, and consistently professional commitment to her clients. Johnson County Community College ERM Team: Janelle Vogler, Director of Audit/Advisory Services, Tom Clayton, Director of Risk Management and Justin McDaid, Manager of Internal Audit Dorothy is a tremendously talented and personable risk management executive. She has helped elevate the profession of risk management as it is practiced by public entity risk managers across the country. Her expansive knowledge and excellent training programs have been widely acclaimed. She is a role model and a mentor to many. Katharine Peeling, Insurance Manager, Montgomery County, MD and former PRIMA President (2006-07) Contact Information Dorothy Gj erdrum, ARM-P Senior Managing Director, Gallagher Public Sector & ERM Consultant 651.642.2999 dorothy_gjerdrum@ajg.com Poudre Fire Ac • Full Fire Services and Emergency 235 Sq. Miles and, sirategic Services Agency 190,000 Population Served 8 Board Members $33,344,879 TIV Operational $13,858,304 Auto TIV Fire Inspections Vehicles/Mobile Equipment Emergency Medical Response $16,752,553 Payroll Fire Prevention 180 Full Time Employees 48 Part Time Employees Public Education and Training Intergovernmental Agreement with City of Fort Collins Administrative Services $21,493,251 Total Operating Expenditures Permits/Development Review Safety Checks, Fire Station Tours Career Opportunities/Committees — High Risk — cancer presumption, etc. Financial Compliance Reputalional Technology 99 South Fiddler's Green Circle, Suite 200 eenwood Village, CO 80111-4949 )3) 773-9999 x: 303.773.9776 II Free 800.333.3231 M.aia.com ,r/ Arthur J. Gallagher Risk Management Services, Inc. Proposed Service Plan for Poudre Fire • District Wide Accident Investigation Training. • Develop customized "tools" (training, equipment use methodology, etc.) for Strains/Sprains, Falls and Misc. cause categories. • Implement "tools" with assistance at Training Facility, Fire Station #1 and Fire Station #12. • Implement the developed tools outlined above district wide. • Benchmark/adjust exposures and controls periodically throughout policy year. Loss Cause Summary Information 100 accidents at a cost of $243. 434.00 were used for this breakdown... Losses were analyzed for frequency and seventy to identify over 85% of Accident Cause areas for both. Loss Causes Catetories 1. Three categories drove 98% of loss costs for a total of $240,321. They are: Cost % a. Strains/Sprains (6 types) $106,726 (44%) b. Misc categories (4 types) $74,090 (30%) c. Falls(4types) $59,505 (24%) 2. The same three loss categories drove 87% of frequency. Count % a. Strains/5prainsIS types) 41 (41%) b. Misc categories (4 types) 38 (38%) c. Falls (4 types) 8 (08%) 3. Top three locations that drove losses: a. Training Facility 34 Injuries (34%) $90,487 Loss Costs (37%) b. Fire Station #1 9 Injuries (9%) $53,180 Loss Costs (22%) c. Fire Station #12 8 Injuries (8°/(,) $11,843 Loss Costs (5%) 4. Misc. categories are too large. Some accidents can be reclassified. This is driving the need for accident investigation training. Gallagher Gallagher Claim Advocacy Services Claim Reviews • Aggressive POA • Reserve advocacy/reductions • Thorough investigations • Medical management • Litigation management • Fraud awareness and defense • Identify Systemic Problems • Push for resolution and closure Claim Audits • Best practices review • Compliance with special handling request/instructions • Compensability verification AOE/COE • Reserve adequacy -recognition of changes impacting reserves • Detailed file review of adjusting activity • Confirm file/adjuster supervision and directions • Cost -containment litigation management • Timely resolution -structured settlement considered if appropriate Coverage Advocacy • Coverage review, intervention Coverage rebuttals Complex Claims Consulting • Analysis and strategy development • Troubleshooting/intervention • Damage control • Cost control • Timely and appropriate vendor list • Negotiation/resolution strategy • Mediation and pretrial preparation and participation CAT Management • Vendor resources/immediate responders • Offsite coordination of team - Client - Adjuster - Consultant - Forensic accountant - Construction manager - And others as necessary • Facilitating advance payments • Proactive claim management • Assist with documentation Claim -Needs Analysis • Interview client • Determine goals and exposures • Outline carriers requirements • Develop service plan and timeline • Ensure accountability Special Handling Instructions • Client -needs analysis • Negotiation with carrier regarding claim handling instructions • Implement • Ensure compliance Seminars/Workshops • Internal training sessions • WC, GL, Products, EPL, Auto, • Fraud, medical Management, New Legislation Insurer Insolvencies • Rehabilitation vs. Liquidation • Guaranty fund availability/limitations • Proof of claim processing • Management of claims TPA/RFP/RFQ • Client -needs analysis • TPA alternatives • Develop RFP and disseminate • Analysis of responses • Interview candidates and visit (tour facilities) • Prepare comparative matrix • Assist client in decision AttorneyNendor Selection • Determine list of potential candidates • Interview candidates • Request/Review CV • Obtain carrier approval • Review selection of attorney/vendor • Implement to ensure satisfaction RMI Claim Management Manual • Comprehensive reference source • Tailored to client • Flexible document • Track Best Practices Health Care Provider Selection • Review medical providers • Tour client facility/plant • Discuss RTW requirements • Implement needed changes • Evaluate NCM • Job descriptions to doctor • Video workstation requirements and provide to doctor RMIS Evaluation and Assistance • Identify client needs • Identify vendors • Develop matrix • Contrast/compare RMIS programs Dissemination of Industry Information • Changes in law • Industry changes • Newsletters Subrogation Assistance • • • City of Fort Collins, Colorado • • • About Arthur J. Gallagher & Co. • Leading provider of risk management and brokerage services • • • Over 300 offices worldwide i l 13,800+ employees • $3+ Billion in revenue • • • Practice group focused 0 • Corporate social responsibility - ethical conduct, • environmental integrity, employee health and i wellness, and community involvement • • GGallagher PUBLIC SLCIOR 4 • • • City of Fort Collins, Colorado I• i. Gallagher Public Sector Practice • . 7,500 public sector clients (nationally) I• . 300 dedicated professionals focused on public sector business • . Cultivate relationships with major public sector markets, service providers and consultants • • . Assist service teams in maximizing marketing results and • coordinating Gallagher's resources • • • Programs: property, all lines aggregate, equipment • breakdown, fiduciary liability • Trainers at PRIMA and PRIMA Institute • • • • G Gallagher PUBLIC SECUOR rj • City of Fort Collins, Colorado • • • Gallagher Public Sector Practice Value Added Services i • • Webinars • • • ERM resource library • • • Risk control topics • • • Client specific needs and inquiries • One-off issues • • • Seminars and workshops • • • RMIS systems • • • Risk management newsletter focused on public • entity i • • 4G Gallagher ru[it CsLCMR 6 • • • • • • City of Font Collins, Colorado • ERM Consulting Full -Scale Implementation . Build a sustainable framework • • . Education for all stakeholders • • . Deploy risk assessment tools • . Continually improve • • Ad -Hoc Consulting • • . Implementation advice • . Ideas & examples from other programs i . Program review & comparison • • GGallagher PUBLIC SECTOR % • Cit of Fort Collins Colorado The Team Priscilla McCoy Unit Resource Manager Area Senior Vice President Tracy Managino ement E Account M1ianagcment Account Manager Anita Bruner Account Management Account Representative Karen Graham Primary Account Executive, Team Leader Area Executive Vice President Ed Davis Senior Risk Control Specialist in Kendall Trump Claims Consultant In Linda Pierce Claims Manager Area rxec. Vice President Public Sector Practice Group Gallagher Risk Services Gallagher Claim Advocacy Service Other Practice Groups GABghF:I' Pusuc sKT08 8 • • • City of Fort Collins, Colorado What is most important when partnering with an insurance broker? • • • • The Team • Team leader actively involved in your account Dedicated to public sector • . Local team has worked together for over 22 years • • . Depth and expertise of account team members • • . Multi -disciplined Bench strength • . Market strength and market relationships - direct basis • • . Claim advocacy services • • . Risk control services • • GGallagher rueuc SK.I OR 9 0