Minnesota Counties Intergovernmental Trust

Transcription

1 Minnesota Counties Intergovernmental Trust REPORT to MEMBERS MCIT is a group of counties and associated members collectively pooling resources to manage risk and reduce the cost of operations for their taxpayers. Our History Created in 1979 as the brainchild of county commissioners MCIT provides members an alternative to insurance. Formed pursuant to Minnesota Statutes and MCIT is a public entity joint risk retention pool designed to provide property, casualty and workers compensation coverage; risk management and loss control services and long-term rate stability to counties and associated members. Membership MCIT s success is directly related to the loyalty of its members. Eightyone of Minnesota s 87 counties participate in MCIT. In addition to counties, almost 380 other public entities participate in MCIT. Soil and Water Conservation Districts Libraries Agricultural Societies Historical Societies Joint Powers Entities And many more Experienced Leadership The nine member MCIT board is a reflection of the membership. Board members are elected at-large by the membership, appointed by the Association of Minnesota Counties or recommended for appointment by the Minnesota Association of County Administrators. Six county commissioners, one county auditor, one county auditor-treasurer and one county administrator presently lead MCIT. Customized Coverage Tailored to meet the unique exposures of public entities, MCIT provides coverage for: Property (building, contents, property in the open) mobiles Inland Marine Liability Bonds Workers Compensation Mission Statement: Providing Minnesota counties and associated members cost effective coverage with comprehensive and quality risk management services. MCIT presently provides coverage for: Over 26,000 employees Property valued at $3.7 Billion Over 8,200 autos/trucks/ trailers

2 Property/Casualty and Workers Compensation Rates Decrease in 2011 Claims experience in both divisions had a more positive development than expected. Likewise, the cost of claims administration has decreased. As a result, members will benefit from an aggregate rate decrease of 4.5% in the Property/Casualty Division. Contributing to this decrease is the decline in the replacement cost of covered property. Members will also benefit from an aggregate rate decrease of 7.8% across all workers compensation class codes in MCIT will once again use fund balance to pay the Workers Compensation Reinsurance Association s assessments due 2011, which results in savings of $627,000 to members. A member s contribution may be larger than 2010 as a result of increases in their exposure base (i.e. increases in payroll, number of covered vehicles, the annual budget or workers compensation claims experience). Workers Compensation Paid Losses Gross Paid $10,698,000 $13,267,000 $10,840,000 Recoveries 1,515,000 2,578,000 2,234,000 Net Paid 9,183,000 10,689,000 8,606,000 Workers Compensation Dollars Spent in % 5% 29% 58% Indemnity Payments $3,154,016 Medical Payments $6,275,872 Expenses $859,691 Rehab Payments $550,518 During the year, the departments most frequently reporting injuries were the sheriff, highway and hospital. Body parts most often reported as having been injured were the low back area, knees and fingers. Most injuries were the result of slips, struck by or being struck against an object which typically resulted in strains, contusion/bruise and cut/laceration. $20 Million Dividend in 2010 Dividends are only issued when determined to be actuarially prudent and fiscally sound. Since 1996 the Trust board has annually returned varying amounts of fund balance to its members. The 2010 dividend was the result of higher than expected yield on investments and claims frequency and severity that did not develop as trends predicted. Workers Compensation Dividend $9.5 Million Property/Casualty Dividend $10.5 Million MCIT is committed to remain fully funded; therefore, future dividends are not guaranteed. Activities to Control Your Workers Compensation Costs Develop a Positive Safety Culture Encourage an Active Safety Committee Equip Staff with Proper Materials and Equipment Provide Training and Education Promote Accountability for Safety at all Levels Conduct Accident Investigation Implement a Return-to-Work Program Ensure Timely Reporting to MCIT Participate in MCIT Sponsored/Endorsed Training Use MCIT Resources (Website, Publications, Webinars) How MCIT Controls the Cost of Workers Compensation Self Administer Claims Employ a Nurse Case Manager Contract with a Doctor to Consult on Treatment Parameters Assign Claim Adjusters to Specific Members Timely and Accurate Benefit Determination and Payments Manage Vendors Use of a Pharmacy Benefit Manager Program Conduct Bill Review and Access Network Discounts Pursue Subrogation and Restitution Opportunities Purchase Reinsurance for Catastrophic Losses

3 Stearns County $1,400,000 Stearns County Contributions and Dividends $1,200,000 $1,000,000 Dollars $800,000 $600,000 $400,000 $200,000 $ WC Contribution $461,901 $492,148 $454,396 $489,404 $610,003 $473,180 PC Contribution $417,157 $438,314 $467,041 $475,651 $576,581 $520,236 WC Dividend $86,410 $112,212 $123,010 $148,134 $260,275 PC Dividend $146,342 $177,612 $146,635 $154,201 $220,543 Stearns County Workers Compensation Contribution Analysis Year Base Contribution Experience Mod. Your Cost Cost Difference 2011 $503, $473,180 $30, $766, $610,003 $156, $674, $489,404 $184, $631, $454,396 $176, $585, $492,148 $93,742

4 Property/Casualty Claim Highlights The most frequently reported claims are not always the most expensive (severe) claims. Together, frequency and severity impact the cost of coverage and a dividend when determined appropriate. Mother Nature was not kind to MCIT in Floods, hail and tornados resulted in several catastrophic losses with an estimated cost of over $2.3M, with $840,000 being covered by reinsurance. Land Use Endorsement claims were at a several year low largely due to the economy. Likewise, employment related claims remained low and were typically concluded after an MDHR/EEOC investigation. physical damage claims rebounded from 2009 due largely to hail damage. During late 2010 several members sustained significant losses to heavy equipment due to fire. Activities to Control Your Property/Casualty Costs Maintain Covered Property and Vehicle Schedules Promptly Report Losses to MCIT Encourage Staff to Attend Defensive Driver Training Conduct Building Inspection and Maintenance Review Contracts from a Risk Management Perspective Promote the Employee Assistance Program Provide Training and Education Participate in MCIT Sponsored/Endorsed Training Use MCIT Resources (Website, Publications, Webinars) Develop a Risk Management Culture How MCIT Controls the Cost of Property/Casualty Coverage Provide Risk Management Advice Provide Loss Control Services Offer Training Tailored to Public Entities Develop Resources on Topics that Expose Members to Loss Make Resources Available to Members Using Various Methods: Regional Training Opportunities On-Site Training Publications Webinars One-on-One Consultation Interactive Video Conferences Offer Boiler Inspections Use Only Experienced Public Sector Defense Attorneys Use Regional Claim Adjusting Network for Property Losses Offer an Employee Assistance Program Provide Membership to the Minnesota Safety Council Purchase Reinsurance 2011 Reinsurance Rates Remain Stable Modest international catastrophic losses and small Midwest storms failed to harden the property market. MCIT renewed property reinsurance with Travelers in 2011 for an estimated cost of $1,218,728* which reflects a slight decrease in rates from Minimal adverse development on prior year claims and MCIT s continued focus on risk management, specifically, law enforcement exposures, boded well for casualty reinsurance costs. MCIT renewed casualty reinsurance with Munich Re in 2011 for an estimated cost of $947,696* which reflects no change in rates, structure or language from * Reflects a reduction in MCIT exposures in 2011 due to the abolition of the membership classes of community action agencies and their associated limited liability partnerships which may be adjusted at the conclusion of ACCAP v MCIT.

5 Stearns County Five Year Totals ( ) Property and IM General Liability Public Employees Liability Stearns County Property/Casualty Claim Frequency MCIT Property/Casualty Claim Frequency PEL 28% GL/LEL 28% 41% Prop/IM 2% GL/LEL 21% Prop/IM 12% PEL 11% Total: 135 Total: % Stearns County Property/Casualty Claim Severity MCIT Property/Casualty Claim Severity PEL 31% PEL 39% 28% 50% GL/LEL 10% Prop/IM 9% GL/LEL 9% Prop/IM 24%

6 Services Available to MCIT Members Employee Assistance Program (EAP) is a voluntary, no-cost counseling service delivered in a clinical setting provided to the employees of MCIT members. Sand Creek Group LTD administers the program using a network of over 500 counselors. The program offers support on personal issues that may impact an employee s performance in the workplace. The EAP also offers 24-7 coaching for supervisors. Employees and supervisors can access services by calling MCIT (6248). Defensive Driver Training (On-Line and On-Site) is available to members through MCIT s partnership with the Minnesota Safety Council. In addition, MCIT offers a 40 minute on-line defensive driving training to all of its members. Contact Patricia Rhue at Police Accredited Training On-Line (PATROL) is a web-based training program designed specifically for patrol officers. An annual subscription fee of $85 per officer provides monthly, 1 hour, POST certified sessions that replace many of the typical expenses of training; namely, mileage, lodging and overtime. This program is offered in partnership with the League of Minnesota Cities Insurance Trust. Contact Laura Honeck at the League of Minnesota Cities Insurance Trust, at Boiler Inspections are performed by Hartford Steam Boiler (HSB) as part of MCIT s Equipment Breakdown Coverage (a.k.a. Boiler and Machinery Coverage) and meet the requirements for the renewal of the registration certificate with the State of Minnesota Department of Labor and Industries Code Division. Contact HSB Inspection Hotline at Minnesota Safety Council Membership is included with your MCIT membership. The Members Only section of the website ( is packed with up to date information and tools to ensure your employees stay safe at work, at play and at home. Other resources of the Minnesota Safety Council include: Access to over 500 industry specific videos on safety (at no charge) Discounts on training and educational opportunities Subscription to their electronic newsletter Access to the Greater Minnesota Safety Network MCIT s Website ( is a gateway to information and resources to educate and assist members on a host of topics. Using your username and password you can access information such as model forms, MCIT publications, research, videos and more in the Resources section of the website. Go on-line to to request your log-in information. MCIT s Video Library boasts an extensive collection of DVDs, videos and CD-ROMs on safety, wellness and risk management. MCIT staff know how important time is to you and your employees and have worked hard to provide up to date, quality videos that are under 30 minutes in length. Popular topics include: Dealing with Difficult Citizens Dog Bite Prevention Chainsaw Safety Road Rage Driver Education For a complete listing of available titles and the checkout process, go to the MCIT website ( Personalized Service Loss Control Consultants assist members with written safety programs; hazard identification including workplace safety surveys and reports; ergonomic assessments; participate in safety committee meetings; OSHA standards interpretation and employee injury data analysis. Consultants also provide employee safety training and written loss prevention educational resources. Contact Kevin Balfanz at Risk Management Consultants respond to coverage, liability and risk management concerns. They review contracts and joint powers agreements providing a risk management perspective. They assist members in identifying potential risks and offer advice as to how members might manage those risks. Contact MCIT at

7 MCIT Resources Visit and Get Connected! Members have access to the Resource section of our website which includes: Resource Library of articles and model forms on key topics Online Forms Archive of MCIT Publications Video Library...and more! To enter the Resources section of our site you will need to log-in and enter your username and password: Go online to to request your log-in information. Find the tools you need to assist with your risk management and loss control efforts and visit MCIT s website now! Minnesota Safety Council Membership to the Minnesota Safety Council (MSC) is included with your MCIT membership. For nearly 80 years, the Minnesota Safety Council has been the only organization in the State to focus solely on safety. The Members Only section of the web (www. minnesotasafetycouncil.org) is packed with the most up to date information and tools. Some benefits of membership include: Video Library Access Magazine Subscriptions Continuing Education Discounts Greater MN Safety Networks Electronic Newsletters Consultation Health & Safety Conference MCIT s Extensive Video Library is FREE for Members Members have free access to MCIT s video library featuring a collection of DVDs, videos and CD-ROMs on safety, wellness and risk management. While some videos are longer, we know how important time is to you and your employees. That is why we work hard to stock up to date, quality videos that are under 30 minutes. Some of our most popular topics include: Dealing with Difficult Chainsaw Safety Citizens Driver Education Dog Bite Prevention Road Rage For a complete listing of available titles and the checkout process, go to MCIT s website (

8 MCIT 2011 Training Schedule JAN January 20th Webinar: SWCD Coverage Review (FREE) January 26th Webinar: County Coverage Review: Property (FREE) January 27th Webinar: County Coverage Review: Liability (FREE) APR April 14th and 15th MCIT/Metro State University HR Certificate Program * April 21st Webinar: Seasonal Employees (FREE) JUL OCT October 5th Topic TBD (St. Cloud Holiday Inn) FEB February 9th Webinar: County Coverage Review: Liability (FREE) February 10th Webinar: County Coverage Review: Property (FREE) MAY May 4th and 5th Managing the Human Resource (St. Cloud Holiday Inn) May 12th and 13th MCIT/Metro State University HR Certificate Program * AUG Loss Control/ Workers Compensation Technical Days of Training Locations and Dates to be announced NOV MAR March 24th and 25th MCIT/Metro State University HR Certificate Program ($750)* March 31st Webinar: Agricultural Societies Coverage Review (FREE) JUN June 9th Employee Benefits (St. Cloud Holiday Inn) SEP September Regional Workshop Schedule 7th Marshall 8th Willmar 14th Rochester 15th Mankato 21st Fergus Falls 22nd St. Cloud 28th Bemidji 29th Grand Rapids DEC MCIT Annual Meeting AMC Conference *must enroll in all 6 sessions; March price is inclusive of all 6 sessions Visit for more information.