PURMIT Board of Trustees Meeting
April 3, 2020
Minutes
Trustees Present: Brian Roy (PSU), Christina McKnight (OSU), Greg Perkinson (SOU), Vivian Chen (OIT), Lara Moore (EOU), Ryan Hagemann (WOU)
Others Present: Ryan Britz (Berkley), James Parker (Trust Attorney), Sidney Friedman, Ron Cutter, Richard Poling & Joel Troisi (BBNW)
Call to Order
The meeting was called to order at 1:01 p.m.
Roll Call
Roll call was taken.
London Meetings – Recap
Mr. Troisi commented that the visit with Lloyds underwriters in February was very successful. The group that attended had two full days of meetings with lead markets, other participating markets and a few new markets. He also noted that the submission is out to the markets at this point. Lloyds, London and domestic markets are in the modeling phase of the underwriting process at this time. The market is operating a bit slower than usual due to the coronavirus pandemic and staff working from home. April 1 is the single largest renewal date for the property market, so most underwriters had not looked at the submission until the April 1 push was complete. Mr. Troisi also noted that underwriters were impressed with the amount of collaboration that occurs between the member institutions, specifically the Risk Council meetings and the risk sharing that occurs within the Trust’s retained layers. Mr. Troisi noted that he should start seeing indications from markets within the next few weeks, which will help to build momentum to fill out the placement. Mr. Troisi warned of the potential for increases due to market conditions. He also mentioned that in addition to the current roster of insurers, he has been working with other interested markets to consider writing the program. Mr. Roy commented that the visit to London was very beneficial for the groups understanding of the market as well as meeting the underwriters that participate on the program.
Mr. Poling continued the discussion with a focus on the casualty lines of business. He noted that COVID-19 has been having a negative effect on the market from a timing perspective. He commented the UE was ahead of the majority of insurers relating to the abuse and molestation coverage, with their coverage stance last year. Mr. Poling has been in contact with the underwriter at UE and has been informed by them that PURMIT should expect an increase on the renewal pricing, with no coverage changes. He further noted that UE’s desired increase was modest compared to other carriers around the country. The excess liability was moved to Liberty last year and is expecting them to renew the coverage this year. He noted that Liberty is not taking any new business submissions this year as they are focusing on their renewal book. Mr. Cutter noted that other pools are seeing increases to their liability premiums this year. Mr. Poling discussed alternative markets.
Mr. Cutter noted that the Foreign Liability will be increasing significantly over the expiring premium, due to the exposures being rated incorrect by the incumbent market. Mr. Friedman noted that the increase may be tempered somewhat due to a decrease in travel due to the coronavirus.
Mr. Poling mentioned that he was not expecting any surprises for the renewal. He noted that public entities are seeing an increase in ransomware attacks in the past six months.
Mr. Parker requested Brown & Brown provide guidance to the group for the upcoming meeting, for estimated premiums so the group has an idea for budgeting purposes. Mr. Roy noted that he would like to have a decent idea for the liability and property lines of business for each institution.
Mr. Hagemann asked for some direction regarding out of state employees and procuring workers’ compensation coverage. Mr. Friedman noted that there is a companion, Other States Coverage, in place for all PURMIT members to provide out of state coverage for employees. Mr. Hagemann noted he would be in contact with Mr. Friedman to discuss further.
Ms. McKnight noted that OSU was in the process of exploring the establishment of a police department that would take effect July 1, 2020. She noted that she would keep the group informed as to what OSU decides.
Action:
No action was taken.
Adjourn
The Board adjourned the meeting at 1:54 p.m.