Cowlitz County moves to withdraw from joint risk pool after premium spike, staff say

Shelley Pierce (identified in the agenda as risk manager) and county staff told commissioners that recent changes adopted by the joint risk pool revised liability coverage terms from "claims-based" to "claims-made," a change that significantly increases exit costs for members and raises premium exposure.

Pierce (or the staff presenter) said the county received invoices late in November and an upper-end premium increase estimate was discussed with commissioners. "We got the upper end of the increase — I believe it was 43% — and we're already told we're gonna get it again next year," one commissioner said during the discussion. Staff later cited an invoiced premium amount of about $860,000 for 2026 and warned that remaining in the pool could push the 2027 bill materially higher.

County legal counsel reviewed the interlocal agreement and staff said the original interlocal (signed in 1989) limits local leverage: the board must give one year’s notice to withdraw, with that notice due no later than Dec. 30 to avoid an additional year's lock-in. Staff presented a draft letter dated Dec. 30, 2025, to serve as formal notice of withdrawal and preserve a six-month window to seek alternate brokers and proposals.

Commissioners expressed frustration over higher premiums and reduced coverage terms. One commissioner said the county may need to purchase a "tail" policy if it exits (to cover prior exposure) and asked staff to clarify the financial exposure and procurement timeline. Staff recommended sending the withdrawal notice and then spending up to six months soliciting alternatives. No formal vote was recorded during the meeting; commissioners authorized staff to submit the withdrawal notice and pursue alternatives.

The county’s next steps include: sending the Dec. 30 notice, soliciting broker and insurer proposals during the six-month window, and clarifying the projected premium and tail costs for 2026–27.