Programs & Services
The State Office of Risk Management is charged by Chapter 412 of the Texas Labor Code to administer insurance services obtained by state agencies, including the self-insured government employees workers’ compensation insurance program and the state risk management programs.
The Office is administratively attached to the Office of the Attorney General and is governed by an appointed Board of Directors. Daily operations are overseen by the Executive Director, as the Risk Manager for the State of Texas. The agency consists of three internal divisions: Strategic Programs, Legal Services, and Internal Operations.
The Office’s primary focus is on enterprise-level risk management, cost control, and efficiency.
Operations & Funding
The Office receives no General Revenue appropriations, carries no reserves, and is financed wholly through interagency contract. This funding program allocates an assessment, similar to a premium, to all participating agencies based on relevant factors as identified by the Board. To date, this methodology has substantially reduced the total cost of the program to the State.
The average cost of the FY12 state assessment was $.60 per $100 payroll, compared to $1.38 per $100 payroll for other carriers in Texas (TDI, 2012)
Cost Savings & Efficiencies
For FY 2012:
- 21.5% reduction in injury frequency rate since FY02
- 43% reduction in annual workers’ compensation expenditures since FY03
- 53% reduction in final assessment per $100 of payroll since FY02
- 70% reduction in medical billing to actual payments in FY12
For FY 2014:
- 24% of eligible agencies participating in the property insurance program