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Home My WebLink About060214_cabs011:30 p.m. Commissioners Chambers JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Leslie Locke, Deputy Clerk of the Board DATE: June 2, 2014 SUBJECT: Washington Counties Risk Pool Update STATEMENT OF ISSUE: Vyrle Hill, Director Washington Counties Risk Pool and David Goldsmith, Member Services Manager have requested to update the County Commissioners on the Washington Counties Risk Pool. RECOMMENDATION: Listen to update. REVIEWED Y: Philip Morle�ounty Admire ator Date WASHINGTON COUNTIES RISK POOL Created by Counties for Counties Lo WHO WE ARE 2013 - 2014 WCRP Members (.I fr 9a014) KIIII www xo.a alb , =., =u (sow) L. unI acm s� .2 r WHAT WE ARE • We ARE a service organization, formed by interlocal cooperative agreement, providing protection from 3rd -party liability losses and other risks including 1 sl- party property losses, and various administrative, claims and risk management services • We are NOT an insurance company • We ARE a member -owned cooperative • We ARE an extension of our member governments • We ARE a public entity that generally operates under legal authorities for counties • �3 cer THE RISK POOL'S MISSION ➢ To provide comprehensive and economical risk coverage ➢ Reduce the frequency and severity of losses, and ➢ Decrease costs incurred in the managing and litigation of claims .n FORMATION AND OPERATING AUTHORITY Chapter 48.62 RCW LOCAL GOVERNMENT INSURANCE TRANSACTIONS RCW 48.62.031 Authority to Self- Insure III I The governing body of a local government entity may individuaily self- insure, may loin or form a self-insurance proaram together with other entities .. In addition, the entity or entities may contract for or hire personnel to provide nsk management, claims, and administrative services in accordance with this chapter. (2) The agreement to form a io'nt self- insurance program shall be made under chapter 3934 RCW driterarovernmental C000er f Act) ... (4) If provided f the agreement or contract established under Chapter 3934 RCW a io nt self - insurance proaram may, in conformance with this chapter: (a) Contract or otherwise provide for risk management and loss control services; (b) Contract or othenevise provide regal counsel for the defen f 1 s and other fecal services:.. . 4 t' M *�r WHAT MEMBERSHIP PROVIDES ➢ Third Party Liability (Casualty) Program • General Liability including Law Enforcement, Public Officials and Disciplinary Proceedings • Employment Practices Liability • Automobile Liability ➢ Property Program (Optional) ➢ Coverages for Crime, Environmental, Public Official Bonds, Special Events, etcetera (All Optional) ;d x� z,?q • Adhere to and abide by the Governing Documents • Appoint Director and Alternate Director(s) for Board • Appoint County Claims Administrator and County Risk Manager • Attend Board of Director meetings and Claim Administrator /Risk Manager Roundtables • Implement /Maintain Risk Management Practices • Assist with the Claims Resolution Processes • Comply with Membership Compact Compliance / Risk Management Guidelines BOARD APPOINTEES AND cae RESPONSIBILITIES • ICA requires each legislative authority to appoint an official or employee of the County to serve with full and complete authority as a member - director and alternate director(s) - of the Board of Directors, the Pool's governing body • Compact requires attendance at Board meetings • Standing Committee participation is strongly encouraged and allowances made Succession /Continuity is an ongoing consideration 0 LIABILITY PROGRAM ➢ Full "Occurrence" Coverage Form ➢ "Occurrence" Limits of $20 -25 Million • Initial $10 million coverage limits are "risk- shared" from the Pool (jointly self- insured by the membership) • Member - selected deductible levels, from $10,000 to $500,000 • Pooled SIR... beyond member deductibles to $100,000 • "Corridor" Retentions... to $2,000,000 • Layered reinsurance from multiple highly -rated companies • $10 (to $15) Million "following form" excess insurancefs) •9 MEMBERS' INSURING AGREEMENT, FO WHAT YOU SEE Your combined insuring agreement provides $20,000,000, or $25,000,000, per occurrence with no aggregate '.. limits, less County deductible from $10,000 to $500,000. FOLLOWING FORM EXCESS INSURANCE POLICY - MEMBERS ARE ALSO 'NAMED INSUREDS'... $10M (or $15M) EXCESS OF UNDERLYING'RISK- SHARED' $IOM JOINT SELF - INSURANCE -'RISK - SHARED' AMONG MEMBER COUNTIES... $10M, LESS COUNTY DEDUCTIBLE •10 ORGANIZATION STRUCTURE F OARD OF DIRECTORS Each Member County appoints irector and Alternate Directors) ing Committees: Finance, Personnel, BOARD Management, Undenvnting EXECUTIVE COMMITTEE 11 members Elected from and by Board of Directors WCRP STAFF Executive Director Administrative Services- Claims Administration - Member Services •t1 0 WCRP OPERATIONAL STRUCTURE Three Divisions: • Claims Administration • Member Services • Field Services (loss control, compact auditing, trainings) • Specialty Services • Administrative Services W FREQUENCYa 3rtl -PARTY L"ILITY OCCURRENCES Summwae0 omn at me closeof 1} 13 tw 5 000 4,3]5 3./W 5` E 3.1]5 trl 1W BBB 1.8]3 1,250 80 825 0 FREQUENCYa 3rtl -PARTY L"ILITY OCCURRENCES Summwae0 omn at me closeof 1} 13 tw g tm trl 1W 80 0 i W d0 A O 10108 -0993 1093 -0993 1090 -09103 1093 -O m 10108 -09/13 &Yew Swumatlon Verlais �tiTrenJ pmlecOM �neuerys FStlmme +worxx NOUn� 013 CLAIMS ACTIVITIES YEAR Claims Submitted During Year 1mo 00 993 000 900 SW ]65 ]qg ]CO 634 6,5 600 500 900 gklpFp Vk,�p1p ,�p11 jpklo1 J ,y N> CLAIMS FREQUENCIES BY TYPE Total k Everts )Frequency) by Claim Type PTD through 9 /30/2013 i Sao San seo °e Sao o s3o wo $10 SVERR &3M -PARTY LUIBIL" OCCURRENCES Summarim Data at Ne clweoff 013 IW g 14p 120 Ian an S an a Q an •16 s o 1899 -0993 iQ'93 -0898 1N8n -WA3 10103 -OBAB 1Q'o3 -O913 }Yw eummMOn Pain Tnv Py3013 �TrenalnPPlgmnm MHO SEStlmates �Mrkerllmrs 0 INCURRED = PAID + RESERVED + IBNR Increases in Incurred Loss Totals ($ Millions) aao 35.0 32.2 30.0 25.0 20.0 7.8 13. 15.0 10.0 8.1 5.0 0.0 �y��1 Qyry� �ti�i Fy�p10 �10y1 Fy,LO'1: �ry0�9 • .v 0 CLAIMS SEVERITIES BY TYPE Incurred Loss Estimates (Severity( by Glalm Type FTO through 9/30/2013 •12 RISK MANAGEMENT -LOSS cer CONTOL RESOURCES ➢ Coordinated trainings and more training ➢ Member County Risk Analysis and Assessments ➢ Pre - defense Reviews ➢ One on One Loss Control Assistance ➢ Human Resources Hotline ➢ On -line library with model and shared policies ➢ Membership Compact Compliance ➢ County Risk Manager and County Claims Administrator Coursework and Certifications ➢ Claims Administrator /Risk Manager Roundtables n •19 ce FINANCIAL HIGHLIGHTS FY -2013 xt Fr >Total Assets = $46.9M • Grew $4.8M ( +11 %) in FY -2013 • Increased 412% since EoFY -2003 low -point ` • Comparison: Total Assets to Total Liabilities ✓EoFY -2003 = 58% ✓EoFY -2012 = 144% ✓EoFY -2013 = 155% ffi Al cev WCRP NET ASSETS WCRP Categorized Assets y •NP: Peassessmentz $30 $25 .[apum ncsets Metl $20 .P/x: Member Asusvnen� 8 $15 a r •a/n oea„rnb� s 510 „s....�, $5 •can. nvea nua (Ner) >rema 50 - 0 FINANCIAL HIGHLIGHTS FY -2013 (CONT) ➢ Net Position (aka "Net Assets" or "Members' Equity ") $16.7M (Board's Target Range = $12.5 - $24.3M) Increased $3.9M ( +30 %) year- over -year Increased steadily ($17.9M) from -$1.2M EoFY- 2003 (NOTE: FY -20033 aided by $2.9M in members' reassessments receivables.) • FY -2013 total includes... ✓$12.5M is 'Restricted' • 0.9M to satisfy SRM's solvency provisions WAC 82.60.03001) • $11.6M per WCRP Board's Policy ✓$0.9M in Capital Assets ✓$33M is 'Non-Restricted' and available er WCRP Board directive (rate stabilization) $35 8 $30 i $25 $20 $15 $10 $o $s WCRP NET POSITION WCRP Categorized tiabilities& Net Position e a]3 NET VOSMON •NP, Omer& Accrued Uabllttl a15R➢ &W PP Race StabifuAmn 0 dams Rexry MM e a]3 WCRP Categorized Revenues FY -2003 through FY -2013 $14 C 0 $12 mintmesi I ncome $1D y $8 $6 $4 mis w(uaeilAy) Assessments $2 y OT OT •24 WCRP Categorized Expenses & Net Operating Income FY -2003 through FY -2013 $12 N C 0 $10 $0 $6 $4 $2 $0 $2 wOpe wvlm me w LOSS WsUD Excess I� �JSILP Fareurznce ®JSILP GIaMrts ResenRs X25 ce OPERATING PHILOSOPHY • Member -owned Cooperative providing risk management products and services, not an insurance company - the Pool is only as strong as its weakest link • Claims are evaluated on their merits by member representatives - to settle or go to trial is determined by each claim's objective merits Membership counts - the members are the Pool's greatest assets Each member is unique - one size does not fit all • The Pool's strength lies in its diversity, integrity and trust amongst its members • .29 ®WASHINGTON COUNTIES RISK POOL Created by Counties for Counties Serving the Membership and Accomplishing the Mission! .3,