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New Mexico Counties Insurance Authority outlines pool benefits and risk-control programs for San Juan County
Summary
Representatives of New Mexico Counties described the county insurance pool model, solvency work, an in-house litigation bureau, and free member services such as Lexipol and online training intended to lower claim frequency and severity.
Grace Phillips, risk-management director for the New Mexico Counties Insurance Authority (MCIA), and Greg Reese, the authority’s loss-prevention manager, briefed the commission on the county-based insurance pool model and an array of member services intended to reduce claims costs.
Phillips described why many New Mexico counties belong to a risk pool rather than obtaining only commercial insurance: pools are nonprofit member-owned entities with lower administrative costs and governance by county representatives. “On a in a pool setting, we don't have a profit. We are a nonprofit entity. All of the funds that we get from our members go into the pool to service both the administrative cost and the payment of claims,” she said, adding the authority’s administrative fee has remained near 12% and lower than typical commercial administrative loads.
Phillips and Reese reviewed recent trends that affect county coverage costs, including high-value law-enforcement settlements outside the pool and a recent county case (Luna County) that settled for $2 million above coverage. To bolster solvency, the authority contracted PricewaterhouseCoopers for a capital adequacy review, formed a captive reinsurance vehicle in Utah and arranged reinsurance partnerships to access broader markets.
The presentation emphasized loss-control programs the pool provides at no extra cost to members. Reese outlined free member services intended to lower exposure: Lexipol (policy development and daily training bulletins), LocalGov U (an online course catalog for law enforcement, corrections and fire/EMS), benchmark analytics tied to claims data, peer-support oversight via Public Safety Psychology Group and accreditation programs for dispatch, corrections and law enforcement. “Lexipol is the industry standard for law enforcement policy development,” Reese said, and described how the platform issues updates and daily training to help keep deputies current on policy changes and legal developments.
Phillips summarized the pool governance model, an in-house litigation bureau and an investigator that together have reduced outside counsel costs, and she explained the board’s role in setting coverage terms and capital policy. The commission thanked MCIA representatives and asked questions about program participation and premium impacts.
