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County hears workers' compensation pitch from Utah Local Government Trust; commissioners ask for a formal quote
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Summary
Utah Local Government Trust presented a workers' compensation option the trust said could reduce premiums compared with the county's current fund; commissioners requested a written quote, details about assumptions and analysis of any impact on the county's UCIP equity before considering a switch.
Darren, representing the Utah Local Government Trust, presented to the commission a workers' compensation proposal intended for public entities only. He said the trust can offer training, loss‑prevention support and a workers' compensation program that — based on recent quotes to other counties — could be roughly 30% lower than the county's current workers' compensation fund pricing.
Darren explained the trust’s competitive advantage is not introductory discounting but a lower "loss cost multiplier" because the trust insures only public entities and manages claims and prevention within that pool. "The difference is the loss cost multiplier and us being healthier as a carrier," he said, adding that the quoted savings reflect actuarial differences rather than an artificial discount.
Commissioners asked whether a lower initial premium could be followed by rate increases, how long a quoted advantage would persist, and what switching carriers would mean for the county’s equity position in UCIP/USIP. One commissioner said the county is a significant equity holder in UCIP and asked staff to quantify any potential impact on that equity if workers' compensation business left the UCIP book.
Darren said the trust provided a prior quote to the county with no discounting and indicated the trust could produce a detailed quote that explicitly shows assumptions (payroll, EMOD, any discounting, surcharges and loss‑cost multiplier effect). Commissioners asked the trust to provide a written quote specifying whether the savings reflect permanent structural differences or short‑term market effects and asked county human resources and finance to review operational impacts before any decision.
Next steps: the board asked staff to obtain a formal, no‑discount quote from the trust, to assess implications for UCIP/USIP equity and to return with legal and financial analyses before any change in workers' compensation carrier.
