GIE is pleased to announce the addition of Nate Simmons to it’s team of Public Entity Experts. In the coming months, Nate will be working on updating GIE to ensure that we are incorporating the best technology and resources available. This means that GIE’s clients and agents will see smoother transactions, easier submissions, and ultimately, better results! Also, look for a brand new website in the coming weeks!
Nate graduated from the University of Oregon in 2009 with degrees in both Marketing and Economics. He has experience in web development, digital marketing, and has held various internships at wholesale insurance companies. In his spare time he enjoys hiking, scuba diving, alpine skiing, and whitewater rafting.
Nate will be at PARMA next week, so be sure to stop by and say hi!
Do You Need A Buffer Layer?
Did your SIR go up and you didn’t want it to?
Try a Buffer Layer Approach.
Last year, public entities across America saw an increase in their SIR’s and many don’t have the loss reserves to support the higher SIR. This leaves these public entities extremely vulnerable in a large loss situation. Should a large loss scenario occur, the risk manager would have to figure out how to externally fund the higher SIR, either with higher taxes or by floating a bond…Not exactly what a risk manager is excited to face with all the other challenges of today.
To counteract this higher SIR move by the standard public entity companies, we are seeing the emergence of a specialty market that offers “Buffer Layers”. These buffer layers allow the client to keep the same lower SIR they prefer and are funded for.
Here’s your typical Buffer Layer scenario: 2008 SIR set at $2mil, 2009 renewal offered at a $4mil with some sort of discount. The client isn’t funded for the$4mil SIR, so we provide a $2mil X/S $2mil buffer layer. These buffer layers do cost money, but they have a decent payback period of less than 10 years in mostcases. Usually, the client uses the discount from the insurance placement, and other available resources to purchase the buffer layer.
The emerging companies providing the $1mil or $2mil layers are specialized and use a more primary loss pick rating system approach. These buffer layers resemble insurance that you’re more likely to use than the excess insurance of today, which companies are betting you don’t use…With the use of buffer layers, it is really a win / win situation. You get the SIR you financially need at a price you can handle and avoid the funding issue during a large claim which could lead oversight of your department decision making powers.
GIE has been a specialized force in the public entity world for nearly 20 years and always stays top of emerging trends in the insurance world. Call us today to learn more about the use of this emerging “Buffer Layer” technique!
541-344-5411
We’ll Be At PARMA!
Sacramento, CA
Stop by booth218 and catch up! We’ll be holding a scratch lottery for running shirts. If you’re a winner remember to bring your shirt to our PRIMA Fun Run/Walk!
Be sure to attend Bob Penny’s learning session on How to Evaluate Your Carrier’s Ability to Pay Your Claims. More information can be Found Here in section C5.
PRIMA 2010
GIE is doing it again! Get ready for the 2010 PRIMA Fun Run/Walk. The event is designed to be a fun, organized, morning stroll with your Risk Management friends.
Catlin Specialty Insurance Company is rated A: XV by AM Best and Company and is an approved non-admitted carrier in 47 states. Catlin has some of the most seasoned underwriters in the public entity and school market…
