Managing Employee Risks and Benefits - R M 369k
Professor: Patricia M. Arnold, CPCU, ALCM Office: GSB 5.126A Office Hours: 2 - 3 PM Fridays, or by app't Phone: 475-6728 Course time, dates: 10 - 11 AM, M-W-F Classroom: CBA 4.332
printable version calendar syllabus e-mail address: pat.arnold@mccombs.utexas.edu OR pma55@austin.rr.com Teaching Ass't: Danielle Tobin (danielle.tobin@bba05.mccombs.utexas.edu)
Calendar - Fall 2009
This course will examine the way in which business and society make an assessment of, control and transfer risk. It is designed for the student with no previous knowledge of risk management. Resources: Textbook: Risk Management for Enterprises and Individuals (by Baranoff, Etti; Brockett, Patrick Lee; Kahane, Yehuda) (Use flatworldknowledge.com web-based text, or purchase student materials at http://www.flatworldknowledge.com). Instructions to access the online text will be provided in class. Reference Book: National Underwriter Tools and Techniques Employee Benefit and Retirement Planning (11th ed.). Readings from outside sources are indicated on our calendar. They are presented here to provide the students with current information on associated topics. Some of these may contain testable content. Planned guest speakers: Igor Frolow (IBM) - pandemic business impact modeling; Chris Wilbratte (Quantum Financial Solutions) - benefits strategies and decision-making. Dates: TBD Reading and Homework Assignments: the calendar below shows dates and assigned topics. Please be prepared for each class. Evaluation & grading: see syllabus
DATE August 26
TOPICS Syllabus overview & use of resources, textbook, reference sources
LIBRARY: Homework and Resources Slideshow: Intro slideshow; review key concepts and Blackboard resources. Q's: What does your employer owe you? Where do you want to go in retirement, and how do you plan to get there? Reading: Chapter 1 and skim thru 4, chapter 5 PBS Glossary - Health Terms III Glossary "Risk Managers' Top 10 Risks": #10: Failure to Attract or Retain Top Talent (Best's Review June 2009) Attaining sustainable growth through corporate social responsibility (IBM) SAP corporate social responsibility report - 2009 (reportalert.info), index & detail; investor info from SAP home website; Employee Interaction Center; policy and values; Benefits; "The Two Faces of Risk" (SAP 6/09) Safeway 2008 CSR; GE; SAP (diversity? downsizing?) Healthymagination (GE) Reading: Chapter 5 Slideshow Screening Contract Employees (Supplement to Workforce Management 6 2009) Emerging Risks (PwC 6 09) Safeway case study Resources: Safeway 2008 CSR; GE; SAP Challenges in creating a Global Risk Management Program (RIMS session: Drug Abuse in the Workplace) Congressional Budget Office "Health" segments Reading: Chapter 6; Chapter 7 Contract Review Summary and Minimum Acceptable Requirements, Request for Certificate of Insurance Guide to Best's Financial Strength Ratings "Health Plans" (Best's Review June 2009) Safety Act (from BPSI website) Risk Analysis template (RIMS) AON Health Care Reform Survey (July 09) III Financial Services: Life/Health Industry, Premiums By Line
Part One: Fundamentals of insurance, tools, and Health - case studies: SAP, GE, Safeway - CSR, SEC and Reuters August 28 - Sept 4 Risk & Society Risk...Theories "Pure" risk, perils, hazards Direct and indirect loss Pre and post-loss risk management Environmental health/safety; life safety Corporate policy statements and CSR reports Self-insurance, loss control, risk mapping Limits Contracts, hold harmless, bonding
Sept 4 Sept 9
Review slideshow incl. emerging risks Roles: Employer & Enterprise Risk Management Evolution of Risk Management; ERM Employment what is an employee cost of risk Use of contracts & agreements Using insurance contract Retaining risk, use of captives, third-party administrators, selfinsurance
September 11
Roles: Insurance and Risk Insurance: Solutions, Institutions and Operations Types of insurance: gov't, private, etc Law of large numbers: pooling and homogeneity Insurer side: affordability/availability indemnification insurance product overview reinsurance Insurable risk characteristics, exclusions Advisory bureaus, markets, classes of insureds/occupancies Legal side, remedies, contracts Standards Insurance (risk transfer), investment, loan?
September 14
Types of Insurers & Marketing Systems Insurance Operations; Markets and Regulation Distribution systems, supply/demand dynamics, intro to Alternative Risk Transfer (ART) markets Roles in production, underwriting, claims Reinsurance and Alternative Risk Transfer Insurance Markets and Regulation Current dynamics - courts, client exposures, regulatory, political Reinsurance and Excess & Surplus Lines Underwriting cycle, combined ratio NAIC and health insurance
Reading: Chapter 7; Chapter 8 III topics: Captives and Other Risk-Financing Options; Buying Insurance: Evolving Distribution Channels; Residual Markets "Dispelling Myths", "Learning Curve" (HSA's), "Wealth of Opportunities" (Life), "Health Insurance Retail Stores", "Selling Up in Down Times" (Life) (all courtesy Best's Review June 2009) Bill may help self insurers PEO's and Texas Licensing/Regulation; code Texas: Nonsubscriber & W/Comp, PEO's Using an Alternative Risk Solution for International Employee Benefits (slideshow) (Bermuda Captive '07) Reading: Chapter 7; Chapter 8 III Topic: Accounting; U S Health Medical Loss Ratio (Best's Review June 09) Workers' Compensation Fraud (Blackboard)
September 16
Financial Operations of Insurers (pricing and ratemaking) Insurance Operations; Markets and Regulation Underwriting risk Investment risk
Organizational environment Pricing risk Capacity, surplus, reserving, mortality tables
September 18
Government Regulation of Insurance Insurance Operations; Markets and Regulation History of regulation - federal, state - of the “business of insurance” Advisory organizations, TPA's Rates, forms Market Conduct Surcharges, markets/risk appetite Modeling, red-lining, CAT's & spread of risk Pricing: tiers, territories, groups/classes Loss Mitigation, cost containment
Reading: Chapter 7; Chapter 8 III Topics: McCarran-Ferguson Act; Insolvencies/Guaranty Funds; State-Backed Insurance; Regulation Modernization Interstate Insurance Product Regulation Commission Heath and Human Services Guidelines for Presenting Risk Information eBilling HIPAA v. W/Comp Claims (Ingenix 4/08) Medicare, Medicaid and SCHIP Extension Act of 2007 (Bus Ins 6 2009) Centers for Medicare & Medicaid Services Heath Insurance Reform for Consumers and for Employers Office of Injured Employee Counsel (OIEC - Texas) TDI Reports Listing Legislative Reports and Presentations Reading: Chapter 9, Chapter 10 State Health Care Reform: The Benefits and Limits of "Reinsurance" (Heritage Foundation, Edmund F. Haislmaier, 2007) Occupational Acc vs. W/Comp (Iowa - 8th Circuit '09)
September 21 September 25
Quiz 1 Insurance Contracts Demystified Fundamental Legal Doctrines, Structure and Analysis Documents - binder, loss report, proof of loss, claim draft, certificate, waivers Contracts: relational, incomplete Authority levels, agency and transaction risk
September 28
Benefit Systems & the Employer - Introduction Types: public, private; group & non-group Injured workers & outcomes Valuing losses, reimbursement systems direct and indirect losses litigation reserving negligence remedies Management of contract, agency, employment risk Cost of risk, resources - drivers, strategic decision making, ERM Tools and Techniques: Part B, Appendices & Chapter 12
Reading: review National Underwriter reference book; skim Chapter 12; Chapter 17 Insurance Health, Vision, Dental Long-Term Care Workers' Compensation Accidental Death & Dismemberment Disability Income Life Alternative Programs Intro: Directors and Officers, Employment Practices, Fiduciary - Legal Liability & Defense Expense (tort, negligence) insurance Small Employer Group Application (Aetna) SBA guide to plans The Economic Case for Health Care Reform (Council of Economic Advisors 6/09) and Small Business (6/25/09) Health Policies (OECD) "Big Employers Freeze Pension Plans" (Watson Wyatt) chapters 1, 5 - 10 and selected readings (TBA) Research Day One: Ginsburg & Supreme Ct Reading: Chapter 15; Chapter 16 III Topic: Retirement Pension Benefit Guaranty Corp; what is? ERISA (Blackboard) Reading: Chapter 17 Corporate Health Care Policy Forecast Survey (Miller Chevalier June 2009) Managing Healthcare Design Build (MCDmag.com March/April 2009) Bridging the Gap (Treasury and Risk 4/07)
September 28 September 30 October 2 October 5
Exam Prep Exam #1 Discuss research and deadlines Systems and roles Workers Compensation and Unemployment Compensation; Business Insurance Tools and Techniques: Part A
Part Two: Retirement - case study: Indiana pension funds, consumer groups, widow v. Chrysler
October 7
Introduce case study Life Cycle Financial Risks
October 9
Demographics; aging workforce Life Cycle Financial Risks Public program Social Security Quiz 2 Speaker? Mortality Risk Management Employment-based Risk Management Employment and Longevity Employment and Health Workshop & Exam Prep Exam #2 - Part Two
Reading: Chapter 17 Pensionopoly: the new retirement game (CA)
October 12 October 14 October 16 October 19 October 21 October 23 October 26 October 28 October 30 November 2
Reading: Chapter 18 Discuss grading, extra credit (see syllabus) Research Day Two Reading: Chapter 19 Reading: Chapter 20 Reading: Chapter 21 Reading: Chapter 22 chapters 15-22, and selected readings (TBA)
Part Three: Planning (and research paper) - case study: influenza - use Tools and Techniques resource Types of employment; job analysis; subsidiaries & affiliates, global risks, Ref: Chapter 15 evolving operations and GRC, reporting requirements Multi-risk Contracts, Business Risk Management III Topic: Key Person; Flu pandemic declared by World Health Organization; WHO site Avian Flu Handout Centers for Disease Control New Scientist special report Vendor relationships, outsourcing, governmental and employer roles; contractual indemnity & statutes Multi-risk Contracts, Business Risk Management Use of technology; Data Privacy & Catastrophic exposures Multi-risk Contracts, Business Risk Management Ref: Chapter 15 Ringing the Pandemic Preparedness Alarm Bells Ref: Chapter 15 Risk Analysis template (RIMS) eBilling HIPAA v. W/Comp Claims (Ingenix 4/08)
November 4
November 6
November 9 November 11
Quiz 3 Social programs; Public assistance programs: Texas MAP Business Risk Management Disaster Recovery Planning, Business Continuity Business Risk Management
Discuss grading, extra credit (see syllabus) Ref: Chapter 18 III Topic: Workplace Safety/Workers' Compensation
November 13
Research Day Three: Paper Due! (post to Blackboard on SafeAssign, bring hard copy to class) 2009 BUSINESS RESILIENCY SURVEY (courtesy iJet) Avoiding Unwanted Surprises (Aberdeen 6 09)
November 16
Role of insurance, cost of risk, loss financing Business Risk Management Management Liability, Fiduciary Liability Business Risk Management Issues in mergers, acquisitions, transactions Business Risk Management Employee Privacy, Crime/workplace violence, Tort Liability
Ref: Chapters 5-10 RM's Choices in a Down Economy (AON 6 09)
November 18 November 20
Ref: Chapters 5-10 Ref: Chapters 5-10 Employment Tax Costs (PwC - 7 pages)
November 23
Ref: Chapter III Topic: Privacy in the 21st Century RIMS session: Drug Abuse in the Workplace Macho Oil Men (BNet)
November 30 December 2 December 4 Updated 9/7/2009
Safety, Leadership, Credit Ratings Workshop and Exam Prep Exam #3 - Part Three
Ref: Chapter Resources: Selected readings (TBA)