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Daniels County hears Mako presentation as insurance trusts signal modest premium pressure
Summary
Mako representatives told Daniels County commissioners that pooling and rising insured values mean modest premium pressure for the property-casualty and healthcare trusts; presenters outlined reserve strategies, identified recent large claims and walked the county through plan design and participation requirements.
Daniels County commissioners heard a lengthy presentation from Mako insurance representatives on April 20 outlining the Property-Casualty Trust (PCT) and Joint Powers (healthcare) Trust renewals. Jason Riddle and Eric Bryson of Mako explained how pooled reserves and actuarial practices aim to smooth rate volatility while noting broad market pressure from higher insured values, added employees and pharmacy costs.
Riddle said the pooled structure gives counties "stability" and allows trustees to use reserves to moderate year-to-year changes. He told the commission that, as a baseline, the pool saw a softening in property reinsurance but that liability and pharmaceutical trends were driving upward pressure in the market. Mako—representatives said industry estimates and their actuary supported a roughly 7%–12% market uplift; for Daniels County the combined effects of added staff and loss runs produced a single-digit premium increase in the current proposal.
Mako detailed the mechanics: claims above a $30,000 pooling point are shared across members, the trust runs third-party appraisals and a capital-reserve strategy is used to "buy down" rate spikes when trustees elect to do so. The presenters pointed to a series of high-profile adverse outcomes in recent years —including a multimillion-dollar wrongful incarceration settlement nationally —to show why building reserves matters to members.
On the healthcare side, Pam Wallally of Mako walked commissioners through several plan options, explaining differences in deductibles, out-of-pocket maximums and pharmacy treatment. She emphasized the program—features the county should weigh together: the effective patient cost, prescription design (some specialty drugs have separate structures), and a participation threshold the trust verifies annually. "We use actuarial corridors," Wallally said, "so local claims can push your adjustment up or down from the statewide base." She also noted the trust now includes annual vision benefits for members and an optional enhanced dental plan.
Commissioners and staff focused questions on the drivers of the proposed changes: increased insured building and equipment values, four new county employees that raise liability exposure, and recent claim activity. Presenters noted Daniels County—liability loss ratios had been affected by a few larger claims but reassured the board that pooling and reinsurance are designed to blunt the impact of one-off catastrophic losses.
What—comes next: Mako said the county will receive its renewal numbers and enrollment worksheets for the July 1 insurance renewal cycle; commissioners set a special meeting to consider the healthcare quotes. Staff said they would run participation checks and review plan-level out-of-pocket scenarios with employees before finalizing any enrollment decisions.
