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County hears Mako briefing on insurance pools after auditors flagged fiscal issues
Summary
Mako representatives told Daniels County commissioners the Property Casualty Trust and Joint Powers Trust use pooled reserves and actuarial reviews to stabilize premiums; trustees covered prior extraordinary wrongful‑incarceration claims and trustees now aim to smooth increases while keeping reserves.
Mako insurance representatives told Daniels County commissioners on April 20 that the county’s participation in pooled trusts helps protect local taxpayers from large, unpredictable losses.
Jason Riddle and Eric Bryson, speaking to the board, described how the Property Casualty Trust (PCT) and the Joint Powers Trust (JPT) use actuarial modeling and a capital reserve to limit how much a single claim year can spike a county’s premiums. “We use an actuary…we third‑party that out,” Riddle said, explaining the pool’s approach to setting premiums and reserves.
The presentation walked commissioners through why trust trustees have resisted repeatedly buying down member rates to zero. Riddle and Bryson described a landmark settlement the trusts paid for wrongful‑incarceration claims — “we settled it for around $14 million,” they said — which trustees covered to avoid leaving member counties on the hook. The presenters said that experience influenced a shift to stronger reserve targets and more measured use of accumulated equity to temper year‑to‑year rate jumps.
Mako outlined the items driving Daniels County’s premium this cycle: higher insured building and equipment values, and an increase in employee counts (Daniels County reported moving from 35 to 39 employees). The presenters said the PCT’s liability side rose roughly 7–12% as a pool this year and Daniels County’s combined equipment and liability movements produced an under‑10% net increase for the county on the property/casualty side.
Officials also described coverage changes and services now included in base policies — zoning, ethics and flood‑plane coverage were moved from endorsements into standard coverage — and a new fidelity/crime breakout that passes through actual per‑employee costs.
Commissioners asked about recent large claims and the ability to pursue subrogation. Mako said they pursue recoveries when cost‑effective and that some large claims are pursued carefully because pursuit costs can exceed recoveries.
The county earlier in the meeting had discussed audit findings and procurement issues with auditors; Mako’s presentation was framed as part of a broader review of county fiscal risks and insurance protections. The commission did not take immediate action on trust membership at the meeting; staff said they would follow up with the trust and bring any recommended action back to a future agenda.
The next procedural steps: county staff will verify how specific liabilities and recent audit items are reflected in the county’s risk profile and share documentation with Mako and the trust trustees for any recommended mitigation measures.
