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MCIT presents county insurance outlook; Stevens County praised for low workers'comp score
Summary
MCIT consultant Richard Meehee briefed the board on reinsurance costs, retention changes, cyber claims trends, and Stevens County's favorable workers' compensation modifier of 0.6.
Richard Meehee, a risk management consultant with MCIT (Minnesota Counties Intergovernmental Trust), presented an overview of MCIT's pool structure, recent program changes and loss trends and answered commissioners' questions on insurance costs.
Meehee told the board MCIT has adjusted retention levels to manage rising reinsurance costs and that the changes affected member contributions. He said the trust increased liability and workers' compensation retention levels, a move that MCIT leaders used to help stabilize premiums for members. "We raised our retention ... to a million," Meehee said in describing the change to the retention level for major loss coverage.
He also highlighted cybersecurity and workers' compensation trends. On cyber claims, Meehee said frequency has increased but severity has decreased and that prevention and IT investments can reduce risk. On workers' compensation, he reported that Stevens County has a particularly strong recent safety record and said, "0.6 is an incredibly wonderful score," noting that MCIT uses a multi-year formula to set contributions and that a lower modifier generally lowers a member's workers' compensation costs.
Board members asked whether cyber coverage is separately underwritten; Meehee explained that MCIT currently provides cyber coverage within its package for members, while workers' compensation pricing is adjusted for each member's historical performance. He also discussed deductible levels and noted the pool-level deductible policy is set by the MCIT board and applies across members; individual counties cannot unilaterally change that deductible under current MCIT policy.
Ending: Meehee encouraged early engagement with MCIT on planned capital projects and said the trust offers loss-control services, training and employee assistance program resources for member counties. He invited commissioners to raise deductible or coverage-design questions with MCIT board representatives if Stevens County wants to consider different collective policy choices.
