SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2024/25 Budget Estimates, October 2023
0 These early estimates have been prepared to aid you in budgeting for the 2024/25 fiscal year. It is important to keep in mind it is early on in the process of determining each Program’s total cost. At this time, your entity’s exposure and experience have not been updated in any of the allocation models. The estimates provided are intended to be conservative; however, final premiums may be in excess of these estimates. Since we currently do not have renewal rates for any of the programs, we recommend you budget towards the upper end of the range plus any differences in exposure or experience which have not yet been considered. Once we have received and updated your losses and exposure, we will distribute updated estimates.
We expect to be able to update losses and exposure for the General Liability and Workers’ Compensation programs near the end of the calendar year.
If you are aware that you have any substantial changes over the past 12 months, please contact Sarah Bishop and a better estimate can be developed for you. $85,371,039
$98,744,909
The EWC premium projections assume a 5% payroll increase for al l members. The pool rates incorporate actuarial projections. We have assumed reinsurance increases of 0% to 15% in the Core Tower and Ed Tower pool layer. We have also assumed reinsurance rate increases of 10% to 20% in the 45x5 layer and 10% to 20% in t he Statutory xs 50M layer for the Core Tower I and Statutory xs 5M layer for the Core Tower II. In the Ed Tower, we have assume d reinsurance rate increases of 5% to 15% in the Statutory layer.
Premium
$686,000 $706,000
Excess Workers' Compensation Program
2022/23 Estimated Payroll:
2023/24 Estimated Payroll:
to
$453,24122/23 Premium:
24/25 Estimated Premium:
22/23 Premium:
23/24 Premium: $553,696
SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2024/25 Budget Estimates, October 2023
0 $61,537,617
$74,033,458
The liability, property, and cyber insurance markets have conti nued to experience a hardening trend in response to rising claims costs. Anticipated rate adjustments include a range of 15% to 30% for the SIR to 10M layer, 25% to 40% inc reases within the 5M xs 10M layer, and 15% to 25% for the 10M xs 15M layer. These preliminary estimates have been formulated uti lizing the 2023/24 final allocation and anticipated market rate fluc tuations. Please note that indi vidual member rate variations may deviate from these assumptions, depending on their loss history , shifts in exposure, or other relevant factors. The market based program allocation of premium will be evaluated and approved by the GL2 Committee in the Spring.
To learn more about PRISM's response to the hard insurance mark et and how to discuss premium increases with stakeholders at your entity, please see the narr atives and talking points provided on PRISM's website at prismrisk.gov/coverages/managing-a-hard-market.
Premium
$2,332,000 $2,549,000
General Liability 2 Program
2022/23 Estimated Payroll:
2023/24 Estimated Payroll:
to
$1,594,02222/23 Premium:
24/25 Estimated Premium:
22/23 Premium:
23/24 Premium: $1,857,247
$378,059,524
$191,405,925
Premium estimates have been prepared to aid you in budgeting fo r the 2024/25 fiscal year. At this early stage in the renewal process, the premium estimates are p rovided as a range with the high end being fairly conservative. Since we are still gathering informa tion and have not yet begun negotiations, we recommend you budget towards the upper end of the range. Updated estimates will be provided as information becomes available.
The property premium projections assume an increase of 25-45% f or most members. This is the average increase and members with adverse loss history and sign ificant wildfire exposure and/or flood exposure in Flood Zone A & V may result in higher-than-av erage increases. These estimates are based on the 23/24 renewal Tot al Insured Values (TIV) state d above and do not consider increases in TIV outside of tr ending or increases in TIV due to property appraisals which may impact the final premium.
The program is expected to lar gely renew with stable terms and conditions, but a full review of the MOC is currently in process and may result in changes at the re newal. Additionally, members may seek options for higher deductibles for premium savings. Please reach out to Sara Carlisle for information.
Premium
$2,082,000 $2,415,000
Property Program
2023/24 AR TIV:
2023/24 EQ TIV:
to
$1,402,36722/23 Premium:
24/25 Estimated Premium:
22/23 Premium:
23/24 Premium: $1,664,987
SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2024/25 Budget Estimates, October 2023
0 The Master Crime Program is currently placed with AIG for the f irst $10M layer, Berkley for the $5M excess of $10M layer, and Great American for the $5M excess of $15M layer. At this time we recommend budgeting for a 10%-15% rate increase. Please note t hat exposure changes could impact the premium.
For those members that do not c urrently purchase the optional $ 250,000 excess of $250,000 Impersonation Fraud coverage, w e recommend budgeting $7,500 to $10,000 in addition to the budget estimates if there is interest in applying for that coverage.
Premium
$15,200 $15,900
Master Crime Program
to
$13,42122/23 Premium:
24/25 Estimated Premium:
22/23 Premium:
23/24 Premium: $13,827
At this time, we recommend members with no paid or open claims, to budget for a 10% - 50% rate increase. For members that hav e paid losses or open claims wit h the potential for paid losses, please budget for a 20% - 85% rate increase. For members with s ignificant losses and inadequate security controls, the increase may be larger.
Premium
$33,500 $45,700
Cyber Liability Program
to
$29,88722/23 Premium:
24/25 Estimated Premium:
22/23 Premium:
23/24 Premium: $30,496