November 9th, 2022
Minutes
Trustees Present: Chair Christina McKnight (OSU), Vice Chair Brian Roy (PSU), Vivian Chen (OIT), Ryan Hagemann (WOU).
Others Present: Patricia Syquiam (SOU), James Parker (Trust Attorney), Reiner Braun, Matt Ahrens, Andrew Pickles, Sid Friedman, Ron Cutter (BB), Craig Scukas (PwC), Jon Paulsen, Will Phomtalikhith, Michelle Sikkink, Jon Weber (Berkley Risk).
Call to Order
Chair McKnight called the meeting to order at 1:02 p.m.
Meeting Minutes from the 06/16/2022, and 06/27/2022 29th, 2022 Board of Trustees Meeting were discussed. Vice Chair Roy moved to approve the minutes as presented, seconded by Chair McKnight, and unanimously approved.
Wholesale broker Ben Merris from CRC Insurance services introduces himself. Mr. Merris noted that he works primarily on excess casualty placements in the public entity market. He noted that losses have been steadily increasing due to social inflation, and nuclear verdicts. He noted that the excess market is slowing down, and is able to get more quotes back on the placements to drive the price in PURMIT’s favor. Mr. Merris also mentioned other structures available in order to obtain coverage, and that PURMIT should explore these options at the next renewal.
Chair McKnight requested that the Risk Council make recommendations for PURMIT if they were to adopt their own memorandum of coverage for casualty. Berkley will lead the Risk Council through this project.
Capital Adequacy Assessment
Craig Scukas from PwC presented a Capital Adequacy Assessment for PURMIT, and estimated that the cost would is estimated to be around $60,000. Mr. Scukas mentioned that the study is good for three to five years, and can be used to justify increasing or decreasing member contributions.
PURMIT Trustees requested a formal agreement outlining the terms of the assessment to be presented at the next meeting.
Broker Updates
Reiner Braun presented property market updates. Mr. Braun mentioned that the GRC loss control inspections PURMIT completed were valuable in the renewal. He also mentioned that the PURMIT is preparing to complete these inspections again before the upcoming renewal, and mentioned that the carriers will cover the cost. Mr. Braun noted that the market overall is expecting a rate increase due to all the natural catastrophes that have recently occurred. He concluded his presentation by mentioning that premium is increasing, and capacity is shrinking.
Financial Review
Michelle Sikkink (Berkley Risk) presented the June 30th, 2022 financial report. Ms. Sikkink discussed the balance sheet portion of the financial statement, noting an increase in Trust assets and liabilities. Mrs. Sikkink also mentions that the investment income is still relatively low in comparison to prior years due to market conditions. Finally, Mrs. Sikkink mentioned that PURMIT’s financial position is above the Oregon statute’s regulatory requirement.
Administrator Updates
William Phomtalikhith from Berkley provided an update on the Risk Council. He mentioned that all schools were able to meet the submission deadlines that were set in the Risk Council Meetings, completed the RMPC program for a 6% premium credit, and worked on loss prevention projects to mitigate losses. Mr. Phomtalikhith concluded his presentation by asking the PURMIT Trustees if there are any additional tasks for the Risk Council to take on.
Chair McKnight suggested an education day where vendors, brokers, or carriers can come present what they do for PURMIT to further the knowledge of the Risk Council members, and Trustees. Berkley will lead the Risk Council in planning this meeting.
Jon Weber presented loss scenarios to the Trustees that require exceptions for reimbursement from PURMIT. The Trustees agreed that PURMIT should be settling losses within the PURMIT layer in favor of the member, and requested Berkley to update the claims manual to allow exceptions for this. Berkley will present updates at the next meeting.
Legal Items
James Parker presented the Treasury Banking Agreement Amendment that would allow PURMIT to invest in the Public University Fund which was previously approved in the prior meeting. The Trustees agreed that since the Public University Fund agreement was approved, this is also approved.
Executive Session
The Board adjourned the regular meeting and went into Executive Session to address documents and information relating to attorney-client privileged communications and trade secret documents. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).
The Board exited Executive Session at 4:59 p.m.
Final Decisions Related to Executive Session Discussions (if any)
The Board made no decisions related to executive session.
Board Meeting Schedule
The next PURMIT board meeting will be scheduled for January 24th at 9:00 a.m. Pacific.
Adjourned
Meeting adjourned at 5:09 p.m.