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Approve a change to the Solano County Self-Insured General Liability Program Self-Insured Retention increasing the current per claim/occurrence $200,000 deductible to a $500,000 deductible
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
County Counsel recommends that the Board approve a change to the Solano County Self-Insured General Liability Program Self-Insured Retention (SIR) increasing the current per claim/occurrence $200,000 deductible to a $500,000 deductible.
SUMMARY:
Based on actuarial study information of the County Self-Insured General Liability Program, it is proposed that the program be revised and an increase from $200,000 to a $500,000 deductible be established. The study revealed that by increasing the deductible, the County has the potential to provide the maximum cost savings in program costs for future years by seeing a decrease in the annual premium. The average net savings is approximately $1.6 million annually.
The program will be funded at the 85% actuarial confidence level for the next five years to avoid fluctuations in rates from one fiscal year to the next, including variances in the number of annual claims and their ultimate costs.
FINANCIAL IMPACT:
While the exact amount of savings will not be known until the final premiums for FY2024/25 are provided, staff has received estimates for FY2024/25 which indicates that a savings of approximately $1,635,000 across all funds could be realized with the lower premium at $500,000 SIR level. Specifically, it is anticipated that the premium would be reduced by approximately $2,487,000 offset by an increased funding in the claims reserve account at the 85% confidence level of $852,000, for a total savings of $1,635,000.
DISCUSSION:
Solano County has participated in the PRISM General Liability (GL) program since November 1, 1998 (previously known as CSAC-EIA). Originally, the County...
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