Title
Receive a report on the General Liability and Workers' Compensation programs for mid-year FY 2015-16.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors' receive a report on the General Liability and Workers' Compensation programs for mid-year FY 2015-16.
SUMMARY
Attached is the PowerPoint overview of the General Liability (GL) and Workers' Compensation (WC) programs for FY 2015-16 to the date of December 31, 2015 and annual funding level for FY 2016-17. This report is in response to the Board's request for a semi-annual update on the trends of claim frequency and severity for General Liability and Workers' Compensation.
DISCUSSION:
The County of Monterey is a certified State of California Self-Insured Public Entity. Pursuant to the State Controller's guidelines for self-insured California Counties, Risk Management contracts with an independent actuarial firm, Bickmore Risk Services, to conduct annual studies and provide reports for both the General Liability and Workers' Compensation programs.
These independent actuarial reports determine and reflect:
- The County's liabilities for current and future claims;
- The Internal Service Fund's assets available to pay these liabilities; and
- The cost allocations to be charged to each department, in order to fund liabilities at the 70% confidence level.
The 70% level of funding is considered "marginally acceptable" by the County's actuarial company. The State Controller's Office and the County's independent actuarial company, however, recommend that after 10 years of operation these two programs should move to an 80% confidence level of funding.
Insurance:
Insurance placement and binder for FY 2016-17 is currently in process. The estimated costs for the premiums are expected to increase:
- California State Association of Counties - Excess Insurance Authority (CSAC-EIA) - Excess Workers' Compensation premium forecasted to increase 13% to 26%
- CSAC-EIA -...
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