SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2024/25 Budget Estimates, February 2024
0 This second round of estimates have been prepared to further aid you in budgeting for the 2024/25 fiscal year. Since the initial version provided in October, we have updated the budget estimates to reflect the estimated 2024/25 exposure information submitted via the renewal applications and losses evaluated as of 6/30/2023. Estimates also include updated pool rates as approved by the Underwriting and Executive Committee. Rates are still pending Board approval in March. The estimates provided are intended to be conservative therefore we recommend you budget towards the high end of the range. Included with the Budget Estimate Report is the Loss Performance Impact Summary Report which will include your experience modification (Ex-Mod) chart and also include information about Pool and Excess Loss Surcharge Credits and Debits.
If you are aware that you have had any substantial changes over the past 12 months, please contact Sarah Bishop and a better estimate will be developed for you. $85,371,039
$98,744,909
The Pool rates are updated and t he Program is funded at an 80% Confidence Level, discounted at
3.75% for investment income. Inc reasing the discount from 3.5% to 3.75% provides some rate relief to the members and positively im pacts the Program’s Net Positio n. Pool rates are still pending the PRISM's Board approval in March of 2024. Reinsurance/Excess Pre miums are estimated with assumptions applied at this time. Adminstrative costs and fees are also estimated. Members who reported payroll exposure increases greater than 5% over last y ear, may see premium increases that are higher than the range provi ded in October. If your agency has directed us to apply the 2022/23 payroll audit to your 2024/25 premium, it has been included in the total collection shown. If you have decided to handle the payroll audit outside of the renewal prem ium, the estimated premium shown is the estimated total collection.
Premium
$694,000 $714,000
Excess Workers' Compensation Program
2022/23 Estimated Payroll:
2023/24 Estimated Payroll:
to
$453,24122/23 Premium:
24/25 Estimated Premium: 2024/25 Estimated Payroll: $105,416,651 22/23 Premium:
23/24 Premium: $553,696
SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2024/25 Budget Estimates, February 2024
0 $61,537,617
$74,033,458
The liability, property, and cyber insurance markets have harde ned in response to increased claims costs. At this time, the GL2 program premium projections assume increases of up to 40%. Individual member rate increases may differ from this range depending on t heir loss experience changes in exposure, or other factors. The market based program allocation of premium will be evaluated and approved by the GL2 Committee in the Spring.
Premium
$2,229,000 $2,415,000
General Liability 2 Program
2022/23 Estimated Payroll:
2023/24 Estimated Payroll:
to
$1,594,02222/23 Premium:
24/25 Estimated Premium: 2024/25 Estimated Payroll: $78,045,281 22/23 Premium:
23/24 Premium: $1,857,247
$378,059,524
$191,405,925
The 2024/25 updated October (Versi on 1) premium budget estimate s had an overall premium increase of 25-45% for most members. This estimate is based on 2023/24 binding total insured values (TIV) and did not take in to consideration property sched ule updates. The February premium estimates are based on updated TIV as of November 29, 2023, and loss history. As indicated in the initial budget estimates, member s with adverse loss history and /or TIV increases between the initial budget and the February budget may result in premium increases that are higher than the range provided in October. Finally, large catastrophic events or econ omic downturn prior to the March 31, 2024 renewal could impact the proper ty insurance marketplace, r esulting in further hardening of the market, potentially impacting the premium estimate.
We are continuing to recommend that you budget at the high end of the range provided. As noted above, members with adverse loss history and/or increases in TIV may result in additional premium.
Premium
$2,082,000 $2,384,000
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, February 2024
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