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MCIT warns of rising property reinsurance costs, highlights cyber claim reductions
Summary
An MCIT representative told the Crow Wing County Board that property reinsurance costs have jumped and explained steps the trust is taking—rate adjustments, higher retentions and targeted risk management—while reporting a drop in ransomware claims and promoting member trainings and services.
MCIT representative Mr. Sieminski told the Crow Wing County Board on June 24 that the Minnesota Counties Intergovernmental Trust is seeing sharp increases in the cost of reinsurance—particularly for property coverage—and is asking members to weigh options like higher retentions and targeted loss-control work.
"MCIT in short, the Minnesota Counties Intergovernmental Trust is is in short your insurer," Sieminski said in the presentation, explaining that the trust is a joint-powers entity that provides claims handling and risk-management services to counties and associated public entities. He said property reinsurance costs have ‘‘gone up 10% in a year's time, which is a huge jump,’’ and that MCIT has adjusted retentions to blunt premium increases (noting a change in casualty retention saved a 21.5% jump and changes to workers’ compensation retentions produced a $470,000 premium savings in reinsurance costs).
Why it matters: counties pay MCIT contributions from levy dollars; Crow Wing’s property and casualty premium is a substantial line item. Commissioners asked for a ballpark figure of the county’s annual premium; staff agreed to provide the county’s premium schedule after the meeting (the administrator identified the county’s property and casualty premium for 2025 as $818,000 during discussion).
Sieminski also highlighted cyber-claim trends, saying email-based schemes account for a large share of losses and that ransomware claims have fallen—crediting improved member practices. "I would say somewhere in the area of 90% of your claims start with email in 1 way, shape, or form," he said. He emphasized MCIT’s nonunderwriting services—loss-control consulting, training, and resources such as the Minnesota Safety Council membership and online materials—while noting cybersecurity protections are encouraged but not a formal underwriting requirement.
The presentation included discussion of dividend policy, benchmarks for workers’ compensation and law-enforcement losses, and a reminder that MCIT conducts five-year appraisals of members’ property values that feed contribution calculations. Commissioners pressed for details on reserves, investment returns and operating cost percentages; Sieminski said reserves are set internally, reviewed across multiple levels and audited by neutral parties and that MCIT can provide further financial breakdowns on request.
Next steps: staff said they will circulate the county’s premium numbers and any requested MCIT financial statements to commissioners.
