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IRMA director outlines member-run self-insurance and warns of rising premiums
Summary
IRMA executive director David Peterson told the council that IRMA’s pooled, member-controlled insurance allows coverage municipal governments cannot buy individually, but national catastrophe trends are pushing property and auto premiums higher.
David Peterson, executive director of IRMA, told Draper City Council that the municipal risk pool gives member cities coverage they cannot buy on the open market and keeps most claims inside a city’s own fund.
"We're not just claims and litigation," Peterson said. "We provide education, claims litigation service, risk management training, loss control inspections." He explained that IRMA operates with a $1,000,000 self-insured retention and purchases catastrophe layers; the pool does not have a general liability aggregate, he said, and IRMA buys cyber coverage that exceeds what single cities can typically obtain.
Peterson warned that national trends are increasing rates. "Property will go up 18%," he said, and "auto is gonna... 20–40% increases this year." He attributed the market shift to wildfire and hurricane losses and to carriers exiting lines such as law-enforcement liability.
The presentation included details about member governance and services: each member city has a seat on IRMA’s board, IRMA provides discounted outside counsel and fronts litigation costs, and staff offer risk analytics and on-site inspections to reduce claims. Peterson said the pool’s reserve model means one city’s claims do not directly raise another member’s premiums for routine losses.
