(workers’ compensation) and SCMIRF
(property/liability) programs had excellent renewals for 2011. Both programs will see some rate reductions, which means lower costs for most members. In addition, there are reductions in reinsurance rates and increases in participation credits.
Financially, both programs are the strongest they have ever been primarily due to more favorable claims experience overall. When there are fewer (or less severe) claims, the program has to pay out less money. This favorable claims experience is a tribute to the hard work and dedication of the members who have increased their emphasis on following policies and procedures and providing more training and accountability.
The SCMIT and SCMIRF boards and staff have worked hard to manage these programs in a prudent manner. We make changes that benefit the members, but only if the changes are warranted based on a review of the data. When making changes, everyone remains aware of their fiduciary responsibility to keep the programs financially sound.
The SCMIT and SCMIRF programs belong to the local governments that are members. Therefore, it is always good when the members can share in the programs’ success. There is no better tangible benefit to share than the "participation credits" provided to those members that have been in the programs for at least three consecutive full years and renew their coverage. Think of the participation credits as something like a "profit sharing" benefit. While not a guarantee each year, participation credits are a way to reward good experience.
The SCMIT board approved $3 million in participation credits for 2011. This is 50 percent increase from 2010. On the SCMIRF side, the board approved $2 million in credits, an increase from $1.5 million for 2010. During these tough economic times, I am sure our SCMIT and SCMIRF members will appreciate these "savings."
SCMIT and SCMIRF provide numerous other benefits not provided other insurers. I would like to highlight our matching grant programs. The programs match funds up to $2,000 per member on a 50/50 basis. Members can use these grants to purchase soft body armor or equipment for law enforcement, fire service and public works. Since the beginning of the various grant programs, SCMIT and SCMIRF have together provided more than $750,000 in funds.
There are many other benefits of participating in the SCMIT and SCMIRF programs. Our staff is available to discuss them with you. After all, we are here to provide you with "service second to none."