The proposed municipal insurance pool is beginning to fill up, and Axxima is readying to play the lifeguard role.
At the recent regular meeting of Tay Township, council received a presentation from CIO and principal broker Ryan Durrell of Axxima Insurance Services regarding a pitch to join an insurance pool with other municipalities around Simcoe County.
The rising costs of municipal insurance had been openly lamented by Tay and other councils in past years, with few insurance providers willing to take on a municipality. Durrell presented reasons why joining a county pool, similar to those established in Waterloo Region and Durham County, would be to the ultimate benefit in savings for residents.
Durrell’s presentation for council and residents led with analogies to the expense of dining out compared to the savings found by cooling meals at home.
A chart was shown with an estimated $22.4 million for Simcoe municipalities insurance costs projected for 2025, of which $20.6 million were allocated to insurance premiums as the status quo with under $1.8 million to municipal deductible losses. Through the proposed pool program, just $18.1 million would be paid in ($8.4 million for pool retention; $7.7 million for excess insurance premium; $2 million for municipal deductible losses).
Durrell explained: “This means that we have up to 19.2 per cent savings over status quo,” calculating to roughly $4.3 million.
For Tay specifically, Durrell showed a chart noting a five-year total direct savings of $587,000 to the township, with an additional $488,000 in accumulated equity within the pool.
Similar presentations had been made within North Simcoe at Penetanguishene council and elsewhere.
Coun. Paul Raymond asked a series of questions to Durrell, including the minimum level of participation required by other municipalities; Durrell replied that participation was driven by premium volume more than the size of municipality, and that just 50 per cent requirement could make the program operational.
“The reality is the county has already signed on, and with the municipalities that have already joined we’re already past the minimum requirement,” Durrell added.
Upon conclusion of the presentation, Mayor Ted Walker shared: “At county (council), it seemed to be a great opportunity for Tay Township.”
He added, “Thanks so much for taking the time to come out and give us this presentation, and – for lack of a better word – dumbing it down for us because I know the insurance world is pretty complicated.”
Later in the meeting, council approved becoming a founding subscriber to the pool.
The municipal insurance pool presentation and staff report can be found in the agenda page on the Tay Township website.
Tay council meets for committee of the whole meetings every second Wednesday of the month, and regular council meetings every fourth Wednesday of the month. Archives and livestreams of council meetings are available through the Tay Township YouTube channel.