The Health District has been a member of a risk pool with Enduris that provides liability and property coverage. The cost for the previous policy year, September 1, 2021, through August 30, 2022, was $229,074 and the new policy year, September 1, 2022, through August 30, 2023, cost is $303,348 (Exhibit A). The new policy rate is an increase of more than 31%. This is due to a couple different factors:
1. The frequency and severity of member claims. The severity of the claims from participating government entities increased by 17%; the number of claims stayed about the same, but the payouts increased; and
2. The cost of reinsurance above the Pool’s self-insured retention. The market has seen a significant rate increase over the last few years and reinsurers are attempting to recalibrate rates to current market conditions.
With the integration of the Health District to Snohomish County effective January 1, 2023, the District should pay the full policy year. Once the District is dissolved, the liability and property coverage will be no longer needed and the District will receive a refund for any unused amount.