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MCIT tells Goodhue County rising costs driven by inflation, reinsurance and property values
Summary
A representative of the Minnesota Counties Intergovernmental Trust told Goodhue County commissioners that rising reinsurance costs, inflation-driven property values and higher medical and repair costs are increasing county pool insurance expenses, though the pool remains financially stable and is returning dividends to members.
Jim Carrolls, a representative of the Minnesota Counties Intergovernmental Trust (MCIT), updated the Goodhue County Board of Commissioners on the pool's finances and risk trends.
MCIT, which Carrolls described as an insurance pool set up by the state in 1979 to serve Minnesota counties, has 81 of 87 counties as members and also covers some county-related entities. Carrolls told commissioners that the pool's costs have risen significantly because of inflationary pressure on reinsurance, construction and claims costs, and higher medical and wage expenses for workers' compensation claims.
Carrolls said MCIT buys reinsurance that covers losses above the pool's retention (previously $850,000) and that reinsurance premiums have risen sharply; MCIT increased its retention to $1 million for 2025 to offset premium increases. He said reinsurance costs have increased as much as 50% over two years for the pool and that the pool's property values, which MCIT insures, rose from roughly $6.6 billion in 2021 (poolwide) and have increased by about 40% over four years.
On claims trends, Carrolls said auto repair and building-material costs are higher and workers' compensation medical and wage costs have grown, all of which translate into higher insurance costs. He described cyber insurance as an evolving exposure and said counties have reduced cyber payouts from about $1.7 million in 2023 to $567,000 in 2024 by increasing prevention and employee training.
Carrolls noted MCIT continues to operate with positive results and issues dividends when premiums collected exceed claims and operating costs. He encouraged counties to use MCIT resources, including a portal for property inventories and a loss-control consultant (Alethia Sheridan) to help improve safety and reduce claims.
Carrolls identified three county contacts for Goodhue County (Scott Arneson, Heather Poncelet and Lucas Dolling) and said MCIT governance includes county commissioners from member counties. Commissioners thanked MCIT for training and resource sharing. Carrolls said MCIT performs property reviews every five years to keep insured values current and that used vehicles or state surplus can be considered for county needs when starting programs that require vehicles.
Ending: Commissioners did not take action on the update; the presentation was informational and MCIT representatives said they will continue to coordinate with county staff on property valuations, loss control and cyber prevention resources.
