Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Risk Management topic
No spam. Unsubscribe anytime.
IRMA director explains self-insurance model, coverage and services to Orem council
Summary
David Peterson, executive director of the Utah Interlocal Risk Management Agency (IRMA), told the Orem City Council that IRMA’s pooled, actuarial-based model provides lower excess insurance costs, member control of claims and coverages not available in the private market, and offers data-driven risk reduction services for municipal members.
David Peterson, executive director of the Utah Interlocal Risk Management Agency (IRMA), presented an overview of IRMA’s structure, coverages and services to the Orem City Council during a work session presentation.
Peterson said IRMA is a nonprofit, government-to-government risk pool founded in 1985 and described its model as actuarial-based and member controlled. “We do not market in IRMA like insurance companies do because we're a nonprofit governmental entity,” Peterson said. He emphasized that members have board seats and votes on policy decisions; he told the council that “Carrie represents you on our board” and that board members determine IRMA policy.
Why it matters: Peterson told the council the pooled model reduces costs for catastrophic excess coverage and litigation and enables members to access services and coverages not generally available in the private market. He said IRMA focuses on risk reduction so members avoid claims and litigation rather than simply paying premiums.
Key coverage and cost points Peterson highlighted included: IRMA purchases a $15 million aggregate cyber policy, which he contrasted with much smaller cyber limits available on the private market. He said IRMA provides land-use legal coverage up to $500,000 and that members may choose their own attorneys for claims. Peterson also listed several pooled-price items and Orem-specific shares: the Origami risk-management information system cost shared across members results in an Orem annual contribution of $15,487; several other pooled coverages and cost comparisons were presented as group totals and member shares.
Peterson described the claims-funding process: IRMA maintains a liquid reserve and an investment account consistent with state investment rules, members contribute annually based on actuarial calculations, and individual member claims under the self-insured retention are repaid to the pool over five years. “You only repay yours,” Peterson said, noting that members do not absorb other members’ claim repayments.
On claims handling and legal support, Peterson said IRMA offers in-house claims and litigation counsel and negotiates lower outside counsel rates for members; legal consultation with the in-house counsel is available without extra charge. He described the member-driven decision-making on settlements: “If you feel on principle you do not want to pay that claim, you want to fight it, that's your decision to make.”
Risk management services: Peterson outlined IRMA’s noninsurance services, including on-site risk assessments, loss-control inspections, data analytics using Origami, risk bulletins, roundtables and training (online and in-person). He described practical guidance IRMA has given members — for example, how to structure internal safety meeting minutes to reduce exposure to plaintiffs’ discovery — and examples of tactical guidance for police training and taser exposure risks.
Peterson said IRMA negotiates coverages and limits that are difficult to obtain individually: examples he gave included an auto-physical-damage pooling arrangement with a $50,000 deductible and a pooled aviation/drone approach that eliminates a standard minimum aviation premium; he also said auto liability excess and equipment policies are pooled to achieve lower per-member costs.
Questions from council members focused on reporting and oversight. Peterson said detailed claim and litigation status is available through Origami to the city’s administrator and that IRMA can provide scheduled quarterly reports or closed-door litigation briefings when requested. “We will come to a closed door session... and go over that with you, update you, and get direction from you,” he said.
What the council requested: Council members asked for more regular updates on litigation and claims; Peterson said he would work with staff to provide quarterly reporting access through Origami.
Ending: The council did not take a formal action on IRMA membership during the session. Peterson offered follow-up help, and the presentation concluded with an offer to assist Orem staff with Origami access and to provide tailored risk assessments.
