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What is IRMA
The Intergovernmental Risk Management Agency, founded in 1979, was
the first municipal risk pool in Illinois. IRMA is a risk sharing pool
of 70 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.
PREMIUM STABILIZATION
In the most recent 5-year period, the IRMA average contribution rate
has increased from $2.673 in 2008 to $2.570 in 2012, a decrease of 3.8
percent. Additionally, members have
received interest income credits totaling more than $39,000,000 since
2002, 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.
EXPANDED COVERAGE
The IRMA pool currently provides coverage for:
- General Liability, Professional Liability, Auto Liability and
Public Officials Liability;
- Employment Practices Liability;
- Workers Compensation;
- Employers Liability coverage;
- Comprehensive All Risk Property that includes coverage for EDP
software, Fine Arts, an Unscheduled Property Floater; and Agreed
Value/Purchase Price for emergency service vehicles; and,
- Crime & Fidelity, Faithful Performance and Computer Fraud, in
addition to providing all statutorily required Public Officials Bonds.
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.
OPTIONAL DEDUCTIBLES
Members annually choose from among five deductible levels: $2,500,
$10,000, $25,000, $50,000, $100,000 or $250,000. Benefits of this program include:
- Control over your annual contribution/premium
- Reduced overall annual costs for good loss experience
- Flexibility to change deductibles on an annual basis
- Professional, public entity specific claims administration
EXPERIENCE MODIFIER
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.
SAFETY/LOSS CONTROL
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,
RISK FINANCING
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
more than $26 million of additional security to the pool.
CLAIMS ADMINISTRATION/LITIGATION MANAGEMENT
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 MEMBER SAVINGS
New members joining IRMA continue to experience significant cost
savings, when comparing their commercial insurance costs with their
annual IRMA contributions.
Never have we better understood the meaning of the expression, "The
Whole is Greater Than Its Individual Parts," than in public risk
pooling. We have the opportunity to:
SPREAD OUR RISK
SHARE THE COST OF THE RISK
UNIQUELY BENEFIT FROM EACH OTHER’S
RESOURCES & IDEAS
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