Insurance broker Alliant outlines plan to move Cowlitz County from pool to independent insurance program

Alliant Insurance Services representatives told the Cowlitz County Board of County Commissioners they could design an independent insurance program tailored to the county’s loss history and secure occurrence‑based coverage and a two‑year premium guarantee on the primary layer of liability coverage.

Brian White and colleagues described a program that would replace the county’s pooled coverage with a combination of a retained self‑insured retention (SIR), a third‑party claims administrator (TPA), a primary liability policy and excess layers placed via a purchasing group. Alliant presented three‑year pro forma cost projections that compared (a) staying with the current pool under projected actuarial increases and (b) an independent program with a $250,000 or $500,000 retention.

White said Alliant had prepared the proposal using 11 years of the county’s loss history and trended incurred losses to estimate annual funding needs for an SIR. The firm projected a first‑year total cost for the independent program that — after accounting for the TPA fee and other lines — could be comparable to or lower than the county’s projected pool costs over the same period, depending on actuarial assumptions.

Commissioners and staff asked technical questions about how a move would be implemented, how claims would be handled, and the risk of loss exposures called “tails” if coverage shifts from occurrence‑based to claims‑made forms. Alliant emphasized that occurrence coverage is the preferred form and said its program would seek occurrence coverage dedicated to the county. Alliant noted that if a current insurer were to switch some coverage to a claims‑made form, it could complicate a future exit because new markets may require buying a tail or otherwise accepting ongoing exposure.

Commissioners asked whether Alliant and its partners would match services provided by the pool; Alliant said the broker and proposed TPA would replicate loss control, training subsidies and claims advocacy and that the quoted costs included a $10,000 underwriting subsidy for loss control plus an Alliant client subsidy for Vector Solutions online training. Alliant proposed a capped TPA fee (the presentation used $40,000 as the working figure; Alliant said a recent quote was slightly lower).

County officials sought assurances on insurer financial strength, market composition and how many layers would be required. Alliant said the excess placement would use a multi‑carrier structure (the WAPEG purchasing group) and that the markets to be used include the same rated insurers active in the state; Alliant emphasized underwriting relationships and qualitative insurer assessment in addition to AM Best and other ratings.

Staff and commissioners asked about governance, the broker’s tenure with public entities and whether Alliant would serve small counties. Alliant said its public entities practice has long experience in Washington state and nationwide and that the firm serves entities of multiple sizes. Commissioners asked for follow‑up on binding details, updated quotes and a plan to transition claims and services if the county decides to pursue an independent program.

No formal decision was taken at the workshop; commissioners asked staff to continue evaluating the feasibility materials and to return with more information on cost details, implementation timeline and interaction with the county’s current pooled provider.