Washington Counties Risk Pool warns of rising claims, funding pressure in Cowlitz County workshop

Chuck Boyd, executive director of the Washington Counties Risk Pool, told Cowlitz County commissioners Monday that rising jury awards and changes in the insurance market have pushed the pool to absorb more risk and face funding pressure.

“The mission of the WCRP is to provide comprehensive and economical risk coverage to reduce the frequency and severity of losses,” Boyd said during a workshop led by the pool. He described a shift in recent years from a $100,000 self‑insured retention to a $3,000,000 retention per claim and said that trend has increased the pool’s funding needs.

Why it matters: The Washington Counties Risk Pool provides liability and property coverage for 24 of Washington’s 39 counties and other optional coverages. When the pool’s finances are strained, member counties may face higher assessments or be asked to increase deductibles. Boyd told commissioners the pool is pursuing a mix of short‑term funding measures and long‑term risk management to reduce claims.

Boyd outlined the pool’s structure and services, including annual board representation for each county, a membership compact, and shared programs such as training, contract review, and a pre‑defense review service that Boyd said is offered free to members. He said the pool supports risk management tools that member counties can adopt — from Lexipol policy subscriptions for law enforcement (with an 80 percent reimbursement if agencies meet usage thresholds) to cybersecurity awareness reimbursements based on user counts.

Boyd cited a rise in large verdicts as a key driver of higher costs. “Settlements have gone up. Jury verdicts,” he said, noting a recent employment trial with an adverse verdict of $19,800,000 and a separate abuse verdict reported at $42,000,000. He called out “social inflation” — higher settlement demands following large verdict headlines — as a factor that raises settlement expectations and costs.

To reduce future liability, Boyd said the pool is emphasizing a top‑down approach to risk management. “All department heads, all elected officials, and everybody puts on their Cowlitz County hat for whatever the issue that you’re dealing with,” he told the commissioners, arguing that leadership buy‑in is necessary to change daily practices that generate claims.

Program highlights Boyd reviewed for Cowlitz County included: - Pre‑defense review: the pool pays outside counsel to review potential employment and other claims before they become formal claims; Boyd said the pool budgeted more than $500,000 for such reviews and is seeking to increase it for fiscal 2026. - Lexipol policy and daily training: agencies that reach an 80 percent usage threshold can receive an 80 percent reimbursement of the Lexipol annual cost. - Cybersecurity awareness reimbursements and a $5,000 annual risk‑reduction allocation to each member (roughly $3,000 general and $2,000 targeted to priorities set by the risk committee). - Specialized corrections support: the pool has funded inmate health monitoring sensors and narcotics detection devices for member jails and purchased virtual‑reality scenario training systems to simulate high‑risk encounters.

Boyd explained the pool’s insurance layers for Cowlitz County: the county carries a $100,000 deductible, the pool carries losses from $100,001 to $3,000,000, the pool purchases reinsurance up to $10,000,000 and excess insurance up to $20,000,000. He said 16 of 24 counties bought an optional $5,000,000 excess layer, for a potential $25,000,000 limit.

On solvency, Boyd said the pool’s actuarial target funding range is substantially higher than current net position and warned the pool is “up against the guardrail with funding.” He said PricewaterhouseCoopers advised a target net position range that the pool is still working to achieve; if the pool dips below state solvency guardrails, the Washington Department of Enterprise Services could require corrective steps.

Short‑term remedies Boyd described include raising member deductibles (member counties can choose deductibles from $10,000 to $500,000) and adding funds via annual assessments; investment income and reassessments are also possible. He said the pool can reassess members mid‑year if needed but prefers to manage with rate setting and fund balance increases.

On legislative strategy, Boyd said the WCRP board authorized creation of a legislative steering committee and issued an RFP for a lobbyist to pursue tort‑reform measures, including changes to damage caps. “We have to strike now,” Boyd said, describing legislative advocacy as necessary to moderate jury awards and long‑term costs.

Commissioners and staff pressed Boyd on two recurring themes: whether verdicts have become larger and more frequent, and whether county‑level management or pool practices explain recent losses. Boyd and county staff described a collaborative approach: claim handling and settlement decisions are coordinated between the pool, county claims administrators and local prosecutors, and the pool’s risk management programs are intended to reduce both frequency and severity of future losses.

The presentation included specific examples of risk reduction and technology grants, and Boyd encouraged Cowlitz County to use the pool’s free pre‑defense review and training resources. He concluded by saying the pool’s short‑term outlook is difficult, but that funding decisions the board makes in the coming year — including rate‑setting for fiscal 2026 — will be the key to restoring the pool’s financial position.

Ending: Commissioners asked follow‑up questions about reinsurance placement and local use of the pool’s services; Boyd said he expected final reinsurer quotes before the end of the month and reiterated that the board is encouraging members to use risk‑reduction funds and pre‑defense review services to curb future claims.