An ERM Mantra
Patient, persevering and persistent. Chauncey Fagler, executive director of the Florida College System Risk Management Consortium, is all of those things.
Whether it’s spending $175,000 to audit property in an initiative that ended up saving consortium members $3 million each year in premium costs, or persuading more of the consortium’s 28 member colleges to participate in a health benefits program, Fagler is always searching for great risk management solutions.
Giving the college system “the best consortium” possible is his mantra, he said.
“Change is always hard. It’s just helping members to see that making changes will be of benefit to them and their colleges,” he said.
His most recent challenge was convincing more colleges to join with the 20 colleges already in the consortium’s health plan. That effort required multiple presentations to HR and business officers of the colleges as well as their boards of trustees.
Fagler is a “trusted adviser,” said Greg Ferguson, corporate account executive, Florida Blue (Blue Cross/Blue Shield). “He leads them down the path to reason to make decisions for the right reasons,” he said.
Fagler’s achievement in keeping consortium’s health care premium costs substantially lower than the market for more than 10 years was a key selling point.
“We have been very fortunate when you compare the consortium to the marketplace,” Fagler said.
He credits his team, the effectiveness of the consortium’s negotiating abilities, and the “outstanding job” that participating colleges do in communicating to employees about cost-savings activities. Two more colleges agreed to participate, resulting in a 30 percent increase in the number of employees protected by the consortium’s health benefits.
“Change is always hard. It’s just helping members to see that making changes will be of benefit to them and their colleges.” — Chauncey Fagler, executive director, Florida College System Risk Management Consortium
Matthew Snook, a partner at Mercer, said Fagler “has really developed and fleshed out the concept of enterprise risk management at the consortium. … Chauncey has a degree of credibility that has made it easier for his team to take this thing they have created and bring others into it,” he said.
“The more bodies they bring in, the more effective they are.”
Fagler’s leadership and problem-solving abilities were also needed a few years back when RMS modeling software changed the consortium’s 250-year probable maximum loss (PML) from $216 million to $436 million.
“That was a big challenge needing a solution,” he said.
Here’s how he found one:
The consortium hired an outside appraisal firm for $175,000 to identify all underwriting data for the covered buildings, which reduced the PML from $436 million to $244 million. Since then, the consortium has saved, on average, $3 million a year on its property program because of the accurate underwriting data.
“We are always asking, ‘Can we show you the benefits of being in the consortium?’ Once the colleges see the benefit to their bottom line, it makes financial sense to be a part of the consortium.” &