MECO representative: County faces 5.12% pooled insurance rate increase as insured property rises

A MECO representative told the meeting the county’s pooled insurance contribution will increase by 5.12% at renewal, a change she tied chiefly to a roughly $4.35 million jump in insured building value and other newly insured assets.

The increase, the presenter said, compares with a roughly 3.5% average pool increase and reflects added insured values on buildings, vehicles (about $250,000) and equipment (about $200,000). “You guys are kind of right on par with where the pool average was that we voted on last year,” the MECO representative said, adding that pooling helps smooth spikes that private carriers may pass on immediately.

Why it matters: the pool’s model spreads loss costs across years and members, which MECO staff say reduces the risk of one-year premium spikes after a large loss. The presenter described trustees’ efforts to build a 5% margin above an 80% expected-claim baseline to strengthen capital adequacy and access to reinsurance.

Key details and supporting information: MECO officials reviewed a line-by-line renewal summary including a roughly 4% decrease in the property base rate, unchanged vehicle and equipment rates, and a 7.5% raise to the liability base rate. The presenter noted fidelity/crime coverage will rise from just over $19 per employee to just under $24 per employee under a three-year contract, locking that cost for the contract period.

Loss-history effects: the county’s liability loss ratio peaked at roughly 122% in 2022–23; the three-year average liability loss ratio is about 77% and property about 35%. The presenter said that if the county has no major losses this policy year those high-year figures will drop off the rolling average and could lower future premiums.

Claims and loss-control examples: MECO staff said a small recent settlement of $9,850 largely covered defense costs and that installing synchronized body and vehicle cameras after a litigation incident helped clarify events and reduce exposure. The presenter urged prompt reporting of potential claims so MECO can log incidents early and investigate subrogation or recovery options that can remove losses from a member’s account.

Services and protections: the packet highlighted team contacts for legal guidance, HR and finance training, cyber-technical support and public-safety risk management. Presenter-named staff and vendors included Dan O’Malley, McKenzie McCarthy, Nancy Iverson, Carly King, Karen Alley and Brandon Ferris; MECO said these services help lower litigation and operational risk and thus premiums.

Coverage note on sexual abuse claims: MECO emphasized its sexual-abuse coverage exists but requires timely reporting. The county must report discovery within 180 consecutive days after initial discovery for coverage considerations, the presenter said, and the policy’s timing and reporting structure could affect eligibility for some incidents.

Next steps: formal appraisals for updated insured values will begin in May 2027 and MECO said it will forward the property-acknowledgement form for signature after renewals. A motion to close the meeting was made and seconded, and the meeting adjourned.