Risk Transfer

The Risk Transfer division manages over sixty property and casualty insurance policies for the A&M System and its components. It also investigates claims for personal injury and property damage; negotiates settlement of employee dishonesty, theft and property damage; coordinates loss prevention and risk reduction actions working closely with each members' safety office; develops proposed written policy and procedures; manages central data system; and initiates third party recovery and subrogation of property damage claims.

Policy statement is as follows:

  • Apply principles of risk management at every management level for the purpose of:
    1. identifying and evaluating risks;
    2. avoiding or eliminating them where practical and;
    3. minimizing, controlling or contractually transferring them to other where possible.
  • Retain those risks that can be self-assumed from current funds without seriously affecting the financial condition of the organization, if this is the most economically practical means of meeting such obligations.
  • Purchase insurance coverage when:
    1. the risk is catastrophic nature or beyond the capacity of the organization to absorb from current funds and when the purchase of insurance is permitted by law for a state agency; or
    2. the expenditure for premiums is justified by services incidental to the insurance contract, or other expected benefits; or
    3. required by law or contract.

The procurement of insurance shall necessity be limited to availability of coverage at reasonable cost, and be subject to the practicality of adopting programs of self-insurance, or self assumption, in whole or in part, consistent with the probable frequency, severity and impact of losses on the financial stability of the A&M System or its member.

Losses from a single occurrence may be self-assumed in this manner, provided that consideration is given to all ramifications of the occurrence in its various aspects, including direct property damage, loss of use, additional expenses to continue operations, and liability to employees and others. Consideration shall be given to the optimum level of self-retention, determine by insurance premiums, anticipated losses and services provided or purchased, when insurance subject to deductibles or self-assumption of risk is considered.

Direct administration of the Risk Transfer Program is provided by the Manager of Safety and Risk Assessment who, along with the Risk Management Audit and Central Support Manager coordinate the program throughout the A&M System and establish uniform System-wide guidelines.

For questions, please feel free to contact: Debbie Smith or Henry Judah at (979) 458-6330.