Getting to Know WMMIC 2008 WMMIC 1. 1. Overview: Types of Pools 2. WMMIC Specifics ◦ Primary...
-
Upload
dinah-jordan -
Category
Documents
-
view
212 -
download
0
Transcript of Getting to Know WMMIC 2008 WMMIC 1. 1. Overview: Types of Pools 2. WMMIC Specifics ◦ Primary...
Getting to Know WMMIC
2008WMMIC 1
1. Overview: Types of Pools2. WMMIC Specifics
◦ Primary objectives◦ Financial overview◦ Regulatory and governance overview◦ WMMIC organizational chart◦ Staff organizational chart◦ WMMIC.com – Our front yard
3. Liability Claims Administration◦ Guiding principles◦ Liability claims flow chart (distributed)◦ RiskMaster – Your RMIS
4. Jefferson County Informationº Current risk management structureº What’s in store, and Q&A
2008WMMIC 2
Association Sponsored vs. Independent
Membership in, for example, the WI County Association is not a prerequisite for membership.
Participation in WMMIC is voluntary.
2008WMMIC 3
Capitalized vs. Non-Capitalized
Each member initially contributes equity equal to the risk of shared (pooled) losses it brings to the program.
Initially required due to mutual insurance company structure.
Additional members are required to contribute equity.
2008WMMIC 4
Contributed $783,000 in 2008
2.34% equity stake in WMMIC
Range of members’ equity is 17% (City of Madison) to 2.77% (Eau Claire County)
2008WMMIC 5
Cash Flow vs. Fully Funded
Members fund their expected losses to a 95% confidence level.
WMMIC does not rely on this year’s premium income to pay last year’s claims.
Necessary due to statutory accounting requirements of the WI insurance commissioner.
2008WMMIC 6
Assessable vs. Non-Assessable
WMMIC members are not jointly and severally liable for other members’ liabilities.
Wisconsin Insurance Security Fund is available to claimants should WMMIC not meet its obligations
2008WMMIC 7
Pools vs. Mutual
WMMIC is regulated by the state insurance commissioner. Wisconsin is one of the very few states that require group self-insurers to operate as insurance companies.
2008WMMIC 8
Excess Insurance vs. Reinsurance
WMMIC issues an insurance policy and is liable to each member for the full limits provided. WMMIC is the insurer.
Claims are not passed on to an excess insurer for handling.
Despite each Member’s self-insured retention, WMMIC operates as a primary, not an excess, insurer.
2008WMMIC 9
Statewide vs. Regional
Multiple coverage vs. Single Coverage
Multiple-Type Entity vs. Single-Type Entity
2008WMMIC 10
WMMIC’s primary objectives are:
Provide a stable, reliable source of liability insurance for its members
Safety of each members’ equity contribution
Return on investment through dividend distributions
2008WMMIC 11
$3,683,194 written premium (2009 liability only)
$12,794,731 total liability loss reserves $23,197,934 paid and contributed surplus,
plus $11,528,941 unassigned surplus 6.57 contributed surplus-to-premium ratio. A- (Excellent) with a stable outlook, per A.M.
Best Financial size category is VI on scale of XV
2008WMMIC 12
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2008 at September 30
Premium
Loss Reserves
Surplus
2008WMMIC 13
WI insurance commissioner (OCI) audits WMMIC every 3 – 5 years
OCI, NAIC and A.M. Best require quarterly financial reporting
Independent financial audit and actuarial review performed annually
Subject to WI open meetings law. Transparent operations
Board of Directors, three standing committees and numerous work groups ensure member involvement
2008WMMIC 15
2008WMMIC 16
Pursue conservative growth that is mutually beneficial to WMMIC and the Member
Analyze and improve the services we provide and products we offer to our members
Expand services and/or products to members within our vision and mission
Provide the best customer service in the industry
Provide a supportive working environment for staff with competitive salary and benefits package for long term commitment to WMMIC.
2008WMMIC 17
2008WMMIC 18
Currently a functional web site, most often used as:
An entryway to RiskMaster WMMIC contact information Risk management resources and links Agendas, minutes and more
Improvements are planned in 2009
2008WMMIC 19
2008WMMIC 20
2008WMMIC 21
2008WMMIC 22
WMMIC Phone: 608-246-3336 4785 Hayes Road Madison, WI 53704 Fax: 608-246-3338
Name Phone E-Mail
● Kevin Murphy (608) 246-3336 [email protected] Executive Director ● Dean Boes (608) 246-3336 [email protected] Operations Manager ● Brenda Schelman (608) 242-7215 [email protected] Claims Representative Fax (877) 285-6915 ● Kimmer Price (608) 245-6892 [email protected] Claims Representative Fax (877) 285-6917 ● Jan Clingman (608) 246-3336 [email protected] Systems Support
Kimmer Price is Jefferson County’s primary contact:
Joined WMMIC in April, 2007 Experience as an account executive, claims
analyst and adjuster with American Family, Humana, Inc. and Royal and Sun Alliance Insurance.
Experienced in both liability and property Pursuing Associate in Claims designation
2008WMMIC 23
Our guiding principles are
1.Promptly and fairly pay what is owed2.To the fullest extent reasonably possible,
use governmental immunities and tort caps available to members
3.No “economic reason” payments
2008WMMIC 24
Recommended Procedure Follow 893.80 closely. Default option is to
disallow a claim. WMMIC contact claimant with verbal/
written denial, alerting them of forthcoming disallowance letter from County.
Allow WMMIC the option of denying small PD claims subject to your approval.
2008WMMIC 25
2008WMMIC 26
Distribute hard copy of flow chart
Brand name product used by numerous public entity pools
Accessed at http://www.wmmic.com/4members.html
Claims information and reports are available to approved users in real time
2008WMMIC 27
$5,000,000 Orange = WMMIC Responsibility Blue = Jefferson County Retention WMMIC Responsibility (with reinsurance support)
$1,000,000 Jefferson County Annual Aggregate WMMIC Retention Retention (Member funded) $525,000 $150,000 SIR
2008WMMIC 28
Total Auto Allocation Gen Liab All Other Confirm TotalMember Name Allocation Allocation less Auto Allocation Allocation Allocation
Brown $337,374 $83,839 $253,535 $63,384 $190,151 $337,374Chippewa $123,047 $42,883 $80,164 $20,041 $60,123 $123,047Dane $377,101 $85,321 $291,780 $72,945 $218,835 $377,101Dodge $223,697 $45,155 $178,542 $44,636 $133,907 $223,697Eau Claire City $99,642 $61,590 $38,052 $9,513 $28,539 $99,642Eau Claire County $163,334 $30,776 $132,558 $33,140 $99,419 $163,334Kenosha $316,441 $66,233 $250,208 $62,552 $187,656 $316,441La Crosse $202,377 $46,094 $156,283 $39,071 $117,212 $202,377Madison $343,261 $202,848 $140,413 $35,103 $105,310 $343,261Manitowoc $160,743 $45,708 $115,035 $28,759 $86,276 $160,743Marathon $134,970 $86,904 $48,066 $12,017 $36,050 $134,970Outagamie $218,920 $65,230 $153,690 $38,422 $115,267 $218,920Rock $183,527 $67,277 $116,250 $29,062 $87,187 $183,527St. Croix $172,203 $62,569 $109,634 $27,408 $82,225 $172,203Waukesha $295,992 $91,255 $204,737 $51,184 $153,553 $295,992Walworth $184,988 $43,509 $141,479 $35,370 $106,110 $184,988Totals $3,537,615 $1,127,191 $2,410,426 $602,606 $1,807,819 $3,537,615Per cent of total 31.9% 17.0% 51.1% 100.0%
Brown County Stad Auth $20,479 $20,479 $20,479Jefferson County $125,100 $39,907 $85,193 $21,267 $63,926 $125,100Total 2009 WMMIC liability premium $3,683,194
A new look and feel for WMMIC, beginning with a web site redesign
Improved strategic planning process Our newest equity member – Jefferson
County Improved liability claims administration Professional development for staff
2008WMMIC 30