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MCIT briefs Isanti County on rising reinsurance and cyber claims, offers risk‑management services
Summary
A Minnesota Counties Intergovernmental Trust (MCIT) representative told Isanti County commissioners that reinsurance and property‑value increases are driving contribution pressures and that cyber claims have spiked, while membership efforts on training and email filtering have reduced ransomware losses.
A representative of the Minnesota Counties Intergovernmental Trust briefed Isanti County commissioners on July 1 about national trends affecting county insurance and risk management, including higher reinsurance costs, rising property valuations and an uptick in cyber claims.
"We're not an insurance company. We're a joint powers entity in a risk sharing pool," Joe Seminski, risk‑management consultant for MCIT, told the board. Seminski said MCIT's membership model is governed by county officials and seeks to keep public dollars stable while providing risk and loss‑control consulting.
Seminski described two cost pressures: higher reinsurance premiums and rapidly rising property values. He said MCIT has increased casualty and workers' compensation retentions to limit premium growth and gave the board examples of steps the pool has taken to offset cost increases. He also noted that MCIT performs property appraisals for buildings valued above $100,000 on a five‑year cycle; Isanti County saw a significant appraisal update in February 2024.
On cyber risk, Seminski said MCIT has seen a multi‑year increase in cyber claims with a large spike in 2023. He said ransomware claims have fallen somewhat and credited member counties' investment in email filtering and employee phishing training. "I like to point out here is the drop in this trend downward... primarily due to a drop off in ransomware claims," he said, while encouraging continued vigilance.
Seminski reviewed workers' compensation trends and the search for effective loss‑control practices; he highlighted MCIT services available to members, including on‑site training, employee assistance programs, defensive‑driver training, boiler/pressure vessel inspections and benchmark analytics for sheriff's offices.
Commissioners asked about future safety concerns, fund reserves and how MCIT communicates claims and lawsuit service issues to county staff. County staff said operational contacts vary by claim type and that, when in doubt, they submit potential claims to MCIT. Seminski encouraged counties to call MCIT with questions and described the pool's emphasis on long‑term stability rather than short‑term profit.
The presentation did not require a board vote but provided context the board said it will use in upcoming budget deliberations.
