Title
Receive a report on the General Liability and Workers' Compensation Programs for FYE 2016-17 and FY 2017-18 Mid-Year.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors' Budget Committee:
Receive a report on the General Liability and Workers' Compensation Programs for FYE 2016-17 and FY 2017-18 Mid-Year.
SUMMARY/ DISCUSSION:
Attached is an overview of the Insurance Policies, General Liability (GL) and Workers' Compensation (WC) programs for Fiscal Year Ending (FYE) 2016-17 and Mid-Year Fiscal Year (FY) 2017-18 as of December 31, 2017. This report is in response to the Board of Supervisor's request for a semi-annual update on the trends of claim frequency and severity for GL and WC.
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, to fund liabilities at the 70% confidence level.
Insurance:
Insurance placement and binder for FY 2018-19 is in the beginning stages of the renewal 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 estimated to increase as much as 25%
- CSAC-EIA - Property Insurance premium is estimated to increase 22%, however the FY 2017-18 premium only increased 2%. Only the actual policy cost is allocated to departments, unfortunately the final number will not be available until April after the Baseline Budg...
Click here for full text