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Committee approves $50,000 feasibility study to explore captive insurance and self-insured retention
Summary
The committee approved a $50,000 expenditure for a feasibility study to evaluate captive/self-insured retention options for property and casualty lines; staff estimated potential first-year savings of $600,000–$800,000 and noted a ten-year loss ratio of about 15%.
The Policy and Procedures Committee on June 3 unanimously approved spending $50,000.00 for a feasibility study to evaluate captive insurance and self-insured retention options for parish property, casualty and motor vehicle coverage.
Tom Salzer, President and Chairman of the Insurance Committee, summarized the parish's insurance history and rationale for the study: a ten-year loss ratio of about 15% and approximately $11,000,000.00 in total premiums paid over that period. Salzer said consultants reduced the study cost from $65,000.00 to $50,000.00 and estimated potential first-year savings of "$600,000.00 to $800,000.00" if a captive structure is viable. Parish Treasurer Stacie Fernandez said current premiums paid this policy year total $1,500,000.00 with a renewal quote near $2,100,000.00, representing an approximate 30% increase.
Salzer and staff explained that a captive program would require capital reserves and stop-loss/reinsurance options to limit exposure, and that a Third-Party Administrator (TPA) would handle independent claim reviews. The committee voted unanimously to approve the study expenditure; Dr. Ward said the item will be placed on the June 17 Regular Meeting agenda for further action by the full Police Jury.
