SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2026/27 Budget Estimates, January 2026
0 This second round of premium estimates have been prepared to further assist members with budgeting for the 2026/27 fiscal year. Since the initial estimates provided in October, these projections have been updated to reflect estimated 2026/27 exposure information submitted through the renewal applications, as well as losses evaluated as of June 30, 2025. Pool rates have also been updated for the EWC and GL1 programs to incorporate the applicable expiring confidence levels and discount factors, which are scheduled for approval at the March Board of Directors meeting.
Pool rates for the other programs, reinsurance and excess insurance premiums, and administrative costs, remain estimates at this stage. As such, members are encouraged to budget toward the high end of the provided range. Consistent with direction from the Board of Directors, these estimates are intentionally conservative; although final premiums may vary from these preliminary projections, staff makes every effort to keep final premiums within the provided range.
Excess Workers' Compensation Program
Premium
24/25 Premium:24/25 Premium: $652,569 2024/25 Estimated Payroll: $105,416,651 25/26 Premium: $909,248 2025/26 Estimated Payroll: $138,005,235 26/27 Estimated Premium: $795,000 to $818,000 2026/27 Estimated Payroll: $124,294,972 PRISM pool rates have been updated in these esti mates and are pending approval by the PRISM Board of Directors at their March 2026 meeting. The estimate incorporates projected 2026/27 payroll exposures submitted through renewal applicati ons and losses evaluated as of June 30, 2025.
Reinsurance / excess insurance costs, as well as administrative expenses, remain estimated at this stage. These estimates also reflect the rating changes approved by the Board of Directors in October 2025, which will be phased in over a three-year period. For 2026/27, the rates are blended at 67% old and 33% new.
Members reporting payroll increases greater than 7% compared to the prior year may experience premium changes outside the range pr ovided in the October estimates. Additionally, members who experienced large claim development since last y ear's losses (evaluated as of June 30, 2024) will likely see premium changes outside of what was pr ovided before as well. For entities electing to apply the 2024/25 payroll audit to t he 2026/27 renewal, the audit adjustm ent is included in the total estimated collection shown. For ent ities settling the payroll audit outsi de of the renewal premium, the amount shown reflects the estimated renewal premium only.
SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2026/27 Budget Estimates, January 2026
0 General Liability 2 Program
Premium
24/25 Premium:24/25 Premium: $2,049,093 2024/25 Estimated Payroll: $78,045,281 25/26 Premium: $2,300,085 2025/26 Estimated Payroll: $108,366,606 26/27 Estimated Premium: $2,661,000 to $2,919,000 2026/27 Estimated Payroll: $106,508,104 The liability market continues to hearden in res ponse to rising claims costs. Based on market conditions, and the Board's direction to be conservative this early on in the process, these estimates reflect rate increases of 20% to 40% for the SIR to 10M layer, 15% to 30% within the 5M xs 10M layer, and 20% to 40% for the 10M xs 15M layer. These preliminary estimates have been formulated utilizing the 2025/26 final allocati on and anticipating market rate fluctuations. Please note that individual member rates may vary depending on loss history development, changes in exposure, or other relevant factors. Therefore, we re commend budgeting towards t he upper end of the range provided. The market based allocation of premium for the program will be evaluated and approved by the GL2 Committee in the Spring.
Property Program
Premium
24/25 Premium:24/25 Premium: $2,207,895 2025/26 AR TIV: $437,166,465 25/26 Premium: $2,273,844 2025/26 EQ TIV: $221,551,432
26/27 Estimated Premium: $2,156,000 to $2,540,000
The first version of the 2026/27 premium estimate s sent in October had an overall premium range of -5% to +10% for most members. This estimate was based on 2025/26 binding Total Insured Values (TIV) and did not take into consi deration property schedule updates. In these updated premium estimates, the premium ranges have been r educed for most members in consideration of the favorable property market and are based on updated TIV as of November 20, 2025, and loss history. Members with adverse loss development and/or TIV increas es since the initial premium estimates may see premium increases higher than the range provided in October. We continue to recommend you budget towards at the high end of the range provided.
Key Note: Large catastrophic event s or economic downturn prior to the March 31, 2026 renewal could impact the property insurance marketplace and potentially affect the premium estimates.
SBERC
City of San Bernardino
Public Risk Innovation, Solutions, and Management (PRISM) 2026/27 Budget Estimates, January 2026
0 Master Crime Program
Premium
24/25 Premium:24/25 Premium: $13,709
25/26 Premium: $13,190
26/27 Estimated Premium: $15,200 to $15,900
The Master Crime Program is curr ently placed with AIG for the first $10M layer, Berkley for the $5M excess of $10M layer, Great American for the $5M excess of $15M layer, and with Crum & Forster for the $5M excess of $20M layer. The layers above AIG provide a $1M Faithful Performance sublimit, while the Great American layer includes a 5 times shared policy Annual Aggregate on this sublimit. At this time we recommend budgeting fo r a 10%-15% rate increas e. Please note that exposure changes could impact the premium.
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
24/25 Premium:24/25 Premium: $20,979
25/26 Premium: $21,512
26/27 Estimated Premium: $25,900 to $39,800
At this time, we recommend members with no paid or open claims, to budget for a 20% - 50% rate increase. For members that have paid losses or open claims with the pot ential for paid losses, please budget for a 20% - 85% rate increase. For members with significant losses and inadequate security controls, the increase may be larger.