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Board voices consensus to pursue membership in intergovernmental risk pool IRMA
Summary
After a detailed briefing from IRMA executive director Margo Ealy, trustees signaled consensus to pursue joining the Intergovernmental Risk Management Agency (IRMA); staff to begin steps needed to terminate current coverage and apply.
The Itasca Village Board heard a presentation Sept. 17 from Margo Ealy, executive director of the Intergovernmental Risk Management Agency (IRMA), and signaled consensus to pursue membership in the regional intergovernmental risk pool.
Ealy said IRMA began in the late 1970s and now serves 72 municipalities in northeastern Illinois, offering pooled insurance, in-house claims handling, loss-control services and training. “We are a full service in house risk management, pool,” Ealy said, adding that IRMA does not use a third-party administrator and provides legal and claims expertise in municipal law.
Ealy described core features of IRMA’s program: a transparent, actuarially based contribution (premium) formula; a sliding-scale cap on the portion of very large claims counted against a municipality’s experience; annual surplus returns driven by investment income; and a robust loss-control and grant program for members. She told the board IRMA carries $15 million per-occurrence liability limits for most lines and offers a choice of member deductibles starting at $2,500. The IRMA team recommended, and village staff said they would consider, joining at a $10,000 deductible and using IRMA’s high-deductible reserve fund mechanism.
Ealy also described the cyber-insurance program IRMA offers. The pool’s cyber limit is $1 million per member with sublimits (for example, a $75,000 sublimit for ransomware response), and she said IRMA manages cybersecurity questionnaires and helps members improve cybersecurity posture to qualify for coverage.
Board reaction and next steps: Trustee Powers and other trustees praised IRMA’s member services and said the village’s renewal market and premium volatility make IRMA an attractive option. Trustee Powers noted that IRMA had already reviewed the village’s loss history and recommended Itasca for membership. After discussion of implementation details — including tail coverage for claims-made lines, proration of policy periods in the first year, and the need to formally terminate existing coverage with the Illinois Public Risk Fund (IPRF) — trustees indicated a consensus to move forward with the membership process. No formal binding vote was taken that evening; staff said a formal board action will appear on a subsequent agenda.
What was said about costs and financial mechanics: Ealy explained IRMA’s sliding-scale “cap” on how large claims affect a member’s experience modifier: very large claims are limited in how much they increase future contributions (Ealy provided an example cap figure of $186,250 counted toward experience in the case of an extremely large claim). She said members may choose higher deductibles in return for lower contributions and that those savings can be kept in an IRMA-managed reserve.
Administrative notes: Staff said that if the village pursues membership it will need to coordinate policy expiration dates, pay prorated contributions in the first year, and explore tail coverage for claims-made lines. Board members asked about counsel selection for claims; Ealy said IRMA typically works with member preferences and subject-matter experts but that final counsel decisions are handled for each claim in coordination with the member.
Ending: After discussion, trustees indicated consensus to proceed with next steps toward IRMA membership so staff can provide the pool with required documents and begin the transition work; a final vote will come at a later meeting.
