About IRMA

The Intergovernmental Risk Management Agency, founded in 1979, was the first municipal risk pool in Illinois. IRMA is a risk sharing pool of 75 local municipalities and special service districts in northeastern Illinois, which have joined together to manage and fund their property/casualty/workers’ compensation claims. All members also participate in a comprehensive risk management program. IRMA has fulfilled its members’ goals of stabilizing future annual contribution rates, improving the quality of our risk management services, and offering one of the most comprehensive pool coverage programs that can be found anywhere for public entities.

In the most recent 5-year period, the IRMA average contribution rate has increased from $2.659 in 2004 to $2.673 in 2008, for an annualized rate increase of about .1%. This small increase in the IRMA rate has provided financial solvency for IRMA.  Additionally, members have received interest income credits totaling $24,700,000 over the most recent 5 years, due primarily to better than expected loss experience by the overall membership and investment income. These credits are deposited in individual member’s accounts, which can be used by the members to offset annual contributions. Income credits have exceeded premium increases by a substantial amount.

The IRMA pool currently provides coverage for:

IRMA also offers members several optional coverage programs such as Fiduciary Liability, Underground Storage Tank Liability, Volunteer Accidents & Disability, and a Special Events Liquor Liability coverage program.

IRMA’s Experience Modifier allows each member of IRMA to receive credit for better than average loss experiences. Good individual accident experience allows the member to receive additional annual savings.

IRMA provides comprehensive safety, loss control, and training services to its members. IRMA utilizes a mix of services from our in-house staff and services rendered by outside consultants to provide for the special and unique safety and training needs of the pool members,

The Board of Directors has established a Members’ Reserve Fund to hedge against unpredictable insurance market cycles and provide capacity to settle large and unexpected claims. Currently, this fund provides an additional $39 million of additional security to the pool.

IRMA’s in-house claims department has continually improved our claims handling services and has given the IRMA organization the opportunity to: monitor claims activity more effectively; reduce administrative overhead previously paid to third-party contractors; and, provide a level of understanding of public entity operations, which could not be duplicated by an outside service provider.

New members joining IRMA continue to experience significant cost savings, when comparing their commercial insurance costs with their annual IRMA contributions.