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County insurance update: health plan performs below claims, property renewals bring new wind/hail deductible
Summary
County staff reported the health plan finished the 12-month period $750,000 below expected claims and reviewed property, inland marine, cyber and workers' compensation renewals, including a market-driven $150,000 per-occurrence wind/hail deductible and a workers' comp experience modification rise.
The Henry County Board of Commissioners received a detailed risk management and insurance renewal update covering employee health claims, property and casualty renewals, and workers' compensation exposure.
County staff reported the insured health plan closed the most recent 12-month period about $750,000 under expected claims. Staff said some large claims were covered by stop-loss insurance and noted the final month can include pendings, but overall performance was favorable.
On property insurance renewals, staff said carriers have shifted to larger per-event wind/hail deductibles. Travelers proposed a $150,000 per-occurrence wind/hail deductible for the county’s property schedule. Staff described buy-down options from specialty markets (for example, Lloyd's of London) that could reduce the county’s per-event exposure for an additional premium in some cases, and said underwriters will review roof-condition information to price any buy-downs.
“...there are carriers out there, primarily Lloyd's of London, that'll do wind buy down quotes,” the presenter said, describing options used by other municipalities.
Staff also reported a property-limit increase on the county schedule (approximately $3 million added for a hall of fame expansion) and that overall property rates were projected to rise about 10 percent. Workers' compensation remains the largest premium line; the county's experience mod increased (from earlier years) and contributed to pricing pressure, though a carrier rate reduction partly offset that increase for the renewal. Staff said the experience mod calculation lags current-year improvements and forecast the mod could decline next year if recent favorable claim experience holds.
No formal action was taken; staff advised commissioners on timing (the July 15 renewal date for some lines) and requested authority to pursue buy-down quotes and gather roof-condition data to present options for coverage changes.
Commissioners asked staff to provide roof-condition information and buy-down options to evaluate cost-effectiveness before making changes to coverage.
