Overview of VMIA

IHEA Forum

Monia ChoudharyMark Cleeve August 2013

VMIA – IHEA Forum

Page 216 August 2013

Core business is as a captive

insurer providing risk management

and insurance solutions

Important contributor to mitigation

of State’s risks

• VMIA established 1996

• More than 4,000 insured entities

• $5 million in risk management funding

• $144 billion of assets insured

VMIA – IHEA Forum

Our Services Include:

Page 316 August 2013

Public Health Insurance Program • Property (ISR)• Construction Insurance• Public & Product Liability • Medical Indemnity • Professional Indemnity• Group Personal Accident • Directors & Officers

Liability

Risk Management

• Risk Framework Quality Review (RFQR)

• Site Risk Surveys (SRS)• Risk Project Funding• Publications• Tools & Templates

Training & Development

• Training calendar• Regional forums• Online modules

VMIA – IHEA Forum

Property (Industrial Special Risks- ISR) Insurance

Page 416 August 2013

• Broad terms of coverage

• What is Covered: • Buildings; • Plant, furniture, equipment & all other contents;• Loss of Revenue and/or Additional Costs of Working post property damage

• Covers all perils (fire, flood, earthquake etc.) except as specifically excluded

• What is Not Covered:• Wear & Tear, Gradual Deterioration, War, Nuclear

• Deductible/ Excess under the policy applicable to all claims:• Varies according to asset value - $500 to $2,500

VMIA – IHEA Forum

Public & Products Liability (PPL) Insurance

• Coverage for legal liability arising out of an occurrence in connection with the business of the Insured

• Covers claims for compensation by third parties for personal injury or property damage

• Excludes claims for pure economic loss (Professional Indemnity), Injury to Employees (WorkCover) and Transport Accidents (TAC)

• Examples of Claims

• Trips & Falls

• Tree falling on vehicle

• Collapse of infrastructure – walkway, balcony

• Fire causes injury & third party property damage

Page 516 August 2013

VMIA – IHEA Forum

Site Risk Surveys (SRS)

• Risk Assessments of hospital sites by VMIA Risk Engineers

• Identify potential risk exposures and recommend treatment options

• Provides an objective view of property, public liability & business interruption risks

• Assists with development of aggregate view of risks across the VPS

• Mitigates risks which positively impacts future premiums

• Provides estimates of Maximum Possible Loss

• Assists in the economic purchase of catastrophic reinsurance protection

Page 616 August 2013

VMIA – IHEA Forum

Site Risk Survey Process• VMIA takes a Risk-based approach to Site Selection

• Annual visits to all sites where asset values >$500m • Triennial review of all sites where asset values >$50m• Other sites according to risk criteria, claims experience

• Procedure:• Contact with Facilities Management to confirm suitable time• Site Visit by VMIA Risk Engineer• Draft Report issued to Health Service for concurrence• Identified Risk Treatment Options (RTOs) pursued according to priority

rating• Extreme Rating RTOs require immediate actioning• High Rating RTOs followed up by VMIA until completion• Medium & Low RTOs require attention at health service’s earliest

convenience

Page 716 August 2013

VMIA – IHEA Forum

Risk Treatment Prioritisation

Page 816 August 2013

VMIA – IHEA Forum

Site Risk Survey Methodology

Survey that analyses the following six elements of the site specific risk profile, and evaluates the treatment, control systems and activities that serve to manage those risks

• Hazards (natural, technological, human and operational in origin);• Construction;• Essential Services;• Risk Management Systems;• Building Services and Equipment; and• Public Safety

• Identification of issues of importance which are assessed using probability and consequence risk matrices

Page 916 August 2013

VMIA – IHEA Forum

Sector Results

Page 1016 August 2013

Health Agencies

All Sectors

Adequate Good Very Good

VMIA – IHEA Forum

Other Risk Management Services:

• Available on VMIA website – www.vmia.vic.gov.au

• Guides & Publications

• Tools & Templates

Risk Register Software-

(http://www.vmia.vic.gov.au/Risk-Management/Tools-and-templates/Risk-register-software.aspx) • VMIA offers a free, easy to use, secure software solution for risk managers

to record and report on key risks. • Risk Register Software can help you:

• reduce time in risk management recording • improve the quality of reports.

Page 1116 August 2013

VMIA – IHEA Forum

Next Steps

• Working closely with Department of Health with respect to Risk Management

• Feedback from hospitals about SRS

• Ongoing development of tools and templates

Page 1216 August 2013

Health team - Your Relationship Managers at the VMIA

Liz Cox, PrincipalRelationship ManagerT: (03) 9270 6996 M: 0408054845 E: L.Cox@vmia.vic.gov.au

Kirsty Ellis, Senior Relationship Manager T: (03) 9270 6917M: 0417134752E: K.Ellis@vmia.vic.gov.au

Monia Choudhary, Senior Relationship ManagerT: (03) 9270 6876M: 0421412041E: M.Choudhary@vmia.vic.gov.au

VMIA – IHEA Forum

16 August 2013 Page 14

16 August 201316 August 2013