Core Purpose and Services of Public Entity Risk Management
Providing coverage and risk management services for municipal members, ensuring budget stability, and offering tailored property, liability, and crime coverage with superior terms and risk management services.
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Presentation Transcript
BIG BIG PICTURE PICTURE Public Entity Pool Public Entity Pool
OUR CORE PURPOSE OUR CORE PURPOSE We provide coverage and risk management services for our members so they can focus on their core purposes. We ensure budget stability for our municipal members by smoothing rate changes over time. We act as an extension of our members (though we provide products and services, that s not all we do). 2
OUR PRODUCTS OUR PRODUCTS AND SERVICES AND SERVICES Property, Liability and Crime Coverage Tailored to the specialized and unique public entity risks of our members Broad coverage terms Prudent limits Superior to what is available in the commercial market Tailored risk management services that include model policies, grants and incentives, training and professional consulting Low, stable rates In-house claims administration Streamlined online annual renewal process 3
OUR CUSTOMERS OUR CUSTOMERS Municipal members Members determine the services we provide and consume our services. Our delivery prioritization is based upon: Members with high loss ratios Members with large exposures Members with fewer internal resources Delivery efficiency (geography) 4
OUR PARTNERS OUR PARTNERS Reinsurance Group of America (Reinsurer) Arnold Laird Group (Broker/Consultant) RMIS Inc. (RMIS Partner) Elliott & De Luce CPAs (Accountant) Sunshine Consulting (Actuary) Smith Bank (Investment Manager and Advisor) Molly Mayer, LLP (General Counsel) Hoffman, Jones (Independent Financial Auditor) County Association of Our State (Association endorsing us and also a member entity) 5
OUR OUR MEASURES OF SUCCESS MEASURES OF SUCCESS Surplus Ratios Growth Metrics Leverage Ratios Member Retention / Growth RBC Exposure Change Dynamic Capital Model Contribution change Profitability Ratios Claims Metrics Loss Ratio Claim Frequency by Line of Coverage (volume) Combined Ratio Claim Costs to Contribution by Line of Coverage (contribution adequacy/equity) Expense Ratio Litigation Costs (e.g. defense costs per litigated claim) 6
OUR COMPETITORS OUR COMPETITORS Commercial market insurers Insurance Corporation of America Commercial Insurance, Inc. Other public entity risk pools Springdale Risk Pool 7
TRENDS TRENDS Member public entity trends Rural members with decreasing population, declining revenues, aging property Legal trends Activist judges eroding tort caps and eliminating immunities (e.g. 11th amendment immunity, and immunity for police pursuits) Novel plaintiff counsel theories (e.g. bad faith claims) Plaintiff-sympathetic juries Negative public perception of law enforcement Limited pool of young talent able to effectively serve our members Insurance industry trends Hardening reinsurance market General business or operational trends Recruitment of experienced professionals to address impending retirements Effectively managing growth to protect surplus position and remaintrue to core mission 8
RELEVANT HISTORY RELEVANT HISTORY The commercial insurance market was ineffective at meeting the unique needs of public entities In 1987, we were formed through the County Association to provide counties a member-governed financially sound alternative for tailored coverage and risk management services at a low, stable cost Became independent from the County Association March 1991, but maintained a strong relationship The pool s governing documents were later expanded to include all municipalities Retirements resulted in changes in broker/consultant, general counsel and Administrator/CEO in 2017 From its original 29 county members, we now boast 80 of the 102 state counties and 19 other municipalities as members and have Members Fund Balance over $19MM 9
SUPPORTING THE STRATEGY SUPPORTING THE STRATEGY 1. Seeking 100% member participation in the online law enforcement policies and procedures program 2. Implementing rate increases incrementally to address adverse loss experience and rising reinsurance costs 3. Continuing member education in use of the online member dashboard and annual renewal process 10
