Isanti County board hears MCIT briefing on rising reinsurance costs, cyber claims and member services

Joe Seminski, a risk-management consultant for the Minnesota Counties Intergovernmental Trust (MCIT), told the Isanti County Board of Commissioners on July 1 that rising property values and higher reinsurance premiums are driving up coverage costs for counties.

Seminski told commissioners that MCIT is a joint powers risk-sharing pool, not a private insurer, and that the pool’s board is made up of county officials. "We're not an insurance company. We're a joint powers entity in a risk sharing pool," he said, stressing the organization’s long-term, non‑profit orientation.

The presentation outlined several drivers of higher costs. Seminski said reinsurance premiums have increased sharply — single‑year jumps in the cost of reinsurance have forced MCIT to consider raising retention levels to limit the direct hit to member contributions. He said MCIT raised its casualty retention from $850,000 to $1,000,000 and increased its workers' compensation retention from $500,000 to $1,000,000; those changes blunted what otherwise would have been much larger premium increases.

Seminski also linked the county-level cost pressure to rising replacement values for buildings. MCIT performs property appraisals every five years for properties valued over $100,000; Isanti County received updated appraisals in February 2024, and Seminski said those revaluations, combined with higher labor and material costs, have raised property coverage costs.

On cyber risk, Seminski said the number of cyber claims has risen for two consecutive years but noted a significant recent drop in ransomware payouts. He attributed that decline largely to improved email filtering and employee training across member counties: "it's somewhere in the area of 90% ... of the claims from cyber that originate from email," he said, and praised members’ efforts on phishing prevention.

Seminski walked through MCIT services beyond claims payment, including on‑site and virtual training, loss‑control consultations, participation in the Minnesota Safety Council, the employee assistance program and a workplace injury hotline. He also noted that MCIT provides boiler and pressure‑vessel inspection services through Hartford Steam Boiler and equipment‑breakdown coverage enhancements.

Commissioners asked about MCIT’s reserve and dividend practices; Seminski said dividend and reserve decisions are actuarial and aimed at maintaining long‑term stability while avoiding overcollection. "We would like to get that premium or the, the dividend reduced, just to be closer and closer to accuracy on the dollars needed," he said.

Board members also asked whether MCIT produces comparative per‑county grades across coverages. Seminski said work‑comp moderation and internal loss runs provide the closest county‑specific benchmarking, but differences in county size, mission and operations make simple cross‑county letter grades unreliable.

Why it matters: Isanti County’s budget and the county‑level cost of property, liability and cyber coverage are affected by the trends Seminski described. The board heard options — including higher retentions — MCIT has used to reduce the near‑term premium impact while retaining coverage for members.

Seminski encouraged county staff to continue using MCIT loss‑control consultants and to submit potential claims or service questions early. "Don't be afraid to contact us," he said. "It's a learning process ... and when it comes to the lawsuits, yes, that communication is vital."

The presentation closed with questions about cyber threat origins and about member engagement in training. Seminski said many cyber attacks originate outside the U.S., and that tracking attackers is a moving target. The board thanked Seminski for the briefing.