Public Risk Innovation, Solutions, and Management (PRISM) 2025/26 Budget Estimates, February 2025
City of San Bernardino
This second round of estimates have been prepared to further aid you in budgeting for the 2025/26 fiscal year. Since the initial version provided in October, we have updated the budget estimates to reflect the estimated 2025/26 exposure information submitted via the renewal applications and losses evaluated as of 6/30/2024. At the direction of the Board of Directors, the estimates provided are intended to be conservative; however, final premiums may be in excess of these estimates. PRISM has contemplated surcharge debits into these estimates. Surcharge credits from the prior year are not included. Pool rates and reinsurance/excess premiums are still estimated and pending Board approval in March therefore, we recommend you budget towards the high end of the range. Final estimates will be provided the first week of June 2025.
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.
Excess Workers' Compensation Program
Premium
23/24 Premium: $553,696 2023/24 Estimated Payroll: $98,744,909 24/25 Premium: $652,569 2024/25 Estimated Payroll: $105,416,651 25/26 Estimated Premium: $939,000 to $986,000 2025/26 Estimated Payroll: $138,005,235 PRISM pool rates are updated in this round of budget estimates, but are pending PRISM's Board approval in March of 2025. We have updated the budget estimates to reflect the estimated 2025/26 exposure information submitted via the renewal applications and losses evaluated as of 6/30/2024.
Reinsurance/Excess Premiums are estimated with assumptions applied at this time. Administrative costs and fees are also estimated. Members who reported payroll exposure increases greater than 5% over last year, may see premium increases that are higher than the range provided in October. If your agency has directed us to apply the 2023/24 payroll audit to your 2025/26 premium, it has been included in the total collection shown. If you have decided to handle the payroll audit outside of the renewal premium, the estimated premium shown is the estimated total collection. As noted in the introduction, these estimates also do not contemplate any premium credits based on loss experience.
Public Risk Innovation, Solutions, and Management (PRISM) 2025/26 Budget Estimates, February 2025
City of San Bernardino
General Liability 2 Program
Premium
23/24 Premium: $1,857,247 2023/24 Estimated Payroll: $74,033,458 24/25 Premium: $2,049,093 2024/25 Estimated Payroll: $78,045,281 25/26 Estimated Premium: $2,562,000 to $2,869,000 2025/26 Estimated Payroll: $108,366,606 The liability market has continued to experience a hardening trend in response to rising claims costs.
Based on market conditions, and the Board's direction to be conservative at this point in the process these estimates reflect rate increases within a range of 20% to 30% for the SIR to 10M layer, 25% to 40% increases within the 5M xs 10M layer, and 15% to 25% for the 10M xs 15M layer. These preliminary estimates have been formulated utilizing the 2024/25 final allocation and anticipated market rate fluctuations. Please note that individual member rate variations may deviate from these assumptions, depending on their loss history, shifts in exposure, or other relevant factors. We, therefore, recommend budgeting at the upper end of the range provided. 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 market and how to discuss premium increases with stakeholders at your entity, please see the narratives and talking points provided on PRISM's website at prismrisk gov/coverages/managing-a-hard-market.
Property Program
Premium
23/24 Premium: $1,664,987 2024/25 AR TIV: $420,501,778
24/25 Premium: $2,207,895 2024/25 EQ TIV: $213,592,632
25/26 Estimated Premium: $2,140,000 to $2,478,000
The 2025/26 October (Version 1) premium budget estimates had an overall premium range of -3 to 12% for most members. This estimate was based on 2024/25 binding total insured values (TIV) and did not take into consideration property schedule updates. The February premium estimates are based on updated TIV as of November 26, 2024, and loss history. As indicated in the initial budget estimates, members 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 While it is anticipated that the recent wildfire events in Southern California will impact pricing for the excess carriers, we do not expect the increases to exceed the high end of the range. However, additional large catastrophic events or economic downturn prior to the March 31, 2025 renewal could impact the property insurance marketplace, potentially impacting the premium estimate.
Ve are continuina to recommend that vou budaet at the hiah end of the ranae provided. As noter bove, members with adverse loss history and/or increases in TIV mav result in additional premium Public Risk Innovation, Solutions, and Management (PRISM) 2025/26 Budget Estimates, February 2025
City of San Bernardino
Master Crime Program
Premium
23/24 Premium: $13,827
24/25 Premium: $13,709
25/26 Estimated Premium: $16,000 to $19,000
Due to recent organizational changes at the program's lead insurer (AIG), at this time we are recommending budgeting for a 15%-35% rate increase in case there are any changes in underwriting appetite or capacity. Please note that exposure changes and loss experience may impact the For those members that do not currently purchase the optional $250,000 excess of $250,000 Impersonation Fraud coverage, we recommend budgeting $7,500 to $10,000 in addition to the budget estimates if there is interest in applying for that coverage.
Cyber Liability Program
Premium
23/24 Premium: $30,496
24/25 Premium: $20,995
25/26 Estimated Premium: $23,100 to $27,300
At this time, we recommend members with no paid or open claims, to budget for a 10% - 30% rate increase. For members that have paid losses or open claims with the potential for paid losses, please budget for a 20% - 60% rate increase. For members with significant losses, exposure changes and inadequate security controls, the increase may be larger. Please note the 24/25 base premium usec does not reflect the credit given to members without losses. This is reviewed and decided each year by the Executive Committee.