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MCIT consultant outlines rising property reinsurance costs, cyber trends and member services
Summary
An MCIT risk consultant briefed Pipestone County commissioners on the pooled liability program, rising property values, reinsurance pressures and cyber claim trends; the presentation emphasized member services including safety resources and dividend history.
Joe Siminski, a risk management consultant with the Minnesota Counties Intergovernmental Trust (MCIT), briefed the Pipestone County Board on April 22 about current trends in reinsurance, property valuations and cybersecurity, and on services MCIT provides to member counties.
MCIT is a risk‑sharing pool that serves local governments, Siminski said, and Pipestone County has been an MCIT member since 1985. He told commissioners that property reinsurance costs have been increasing, driven by higher property valuations and higher repair costs for labor and materials. Siminski said the pool has taken steps to limit premium spikes, including adjusting retention levels for casualty and workers’ compensation to reduce premium increases for members.
Siminski highlighted an increase in the property and liability rate area (a cited 11.2% jump in an illustrative slide) and noted an historical dividend program: "For approximately 30 years or so straight, we've been able to get dollars back to our members when it's financially and fiscally sound, according to our actuaries," he said. He also described a spike in cyber claim values in early 2023 and said MCIT has a cyber specialist and resources to help members manage that risk.
MCIT services available to members include loss control consultation, safety committee support, online training, employee assistance program (EAP) benefits and Hartford Steam Boiler equipment breakdown inspections. Siminski encouraged commissioners to use MCIT’s website resources and to engage MCIT for contract and claims reviews.
A commissioner asked whether state regulations require minimum reserve levels for a joint powers pool like MCIT; Siminski said he would follow up with more detail, noting that actuaries and MCIT governance closely monitor reserves but that MCIT differs from private insurers in regulatory treatment.
Ending: Commissioners received the presentation for information; no county action was required. Staff said MCIT will provide follow-up information on reserves and on employee safety resources.
