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County hears MAKO renewal: higher liability rates, added coverages and explanation of loss ratios
Summary
MAKO presented Lincoln County's property and casualty renewal, explaining a roughly 3.5% pool-average rate increase driven by higher liability rates (7.5%) and increased property appraisals; the pool added zoning, ethics and floodplain coverages with $10,000 deductibles and discussed loss-ratio impacts from large open claims.
A MAKO representative presented Lincoln County’s property and casualty renewal at the commission meeting, reviewing the pool’s structure, recent claims and recommended options.
The presenter outlined why pools can offer stable pricing compared with private insurers and warned that recent appraisals pushed insured values higher. She cited a 16.77% driver related to updated property appraisals but noted the pool-average combining property and liability equates to a smaller net change. Liability rates were increased by 7.5% while some property-rate components were reduced based on recent appraisals; the presenter summarized the net pool average as a 3.5% rate increase.
The board was told MAKO can now include additional coverages—zoning, ethics and floodplain—under a $10,000 deductible after reserve growth, and that deductibles and stated-value options are available for counties that wish to reduce premium exposure at the cost of lower indemnity in a total-loss scenario.
MAKO reviewed loss-ratio impacts: a set-aside for large open claims elevates current loss ratios until those claims close, which in turn affects next-year premiums. The presenter said some open claims have reserve amounts redacted in the public packet but can be discussed with the claims team outside a quorum if commissioners request specifics.
The presentation closed with a summary of MAKO risk-management services—public-safety risk managers, peer-review coordinators, general counsel for HR and land-use issues, and a county litigation group that the presenter said generally produces lower defense costs than outside counsel. The presenter recommended continued reporting of incidents to ensure coverage and accurate loss-ratio accounting.
The board did not take additional binding action during the presentation; commissioners asked follow-up questions about deductibles, replacement values and coverage for special districts.
