History and Operation
The Washington Cities Insurance Authority (WCIA) is a municipal organization of Washington public entities that join together for the purpose of providing liability and property financial protection to its members.
WCIA was created in 1981 by Interlocal Agreement, as authorized under RCW 48.62 and 39.34, as nine Puget Sound cities. Since then the organization has prospered through two severe insurance market crises. Membership has grown to over 125 municipal corporations, spanning the entire state of Washington. Originally called Puget Sound Cities Insurance Authority, the name was changed in 1986 to reflect statewide membership.
Authority membership focuses specifically on local government entities and their related regional interlocals in order to provide the expertise of anticipating and responding to each member's needs. It maintains complete control over every pool function, including claims administration, fiscal stability, coverage parameters and member services. A delegate from each member represented on the WCIA Board of Directors, elects pool officers and Executive Committee members on a merit basis. A committee system generates detailed Board recommendations.
The Executive Committee sets the organization's general operational direction and directs staff. The Authority utilizes an in-house staff to execute the Committee's insurance and municipal directives. Staff has no other competing interests to dilute their concentrated efforts.
Over the years this strong membership participation has fostered and enhanced self-insurance philosophy, a significantly reduced reliance upon the insurance industry and a sophisticated knowledge of pooling operation.
Insurance Programs
The Authority provides liability coverage that is broader in scope than any commercial insurance or other pool coverage available in Washington. Steady growth in membership programs illustrates a continued interest in these coverages.
WCIA offers several different insurance programs from which members can chose. In addition to Liability, Property and Auto/Physical Damage, which includes coverage for flood and earthquake, members may purchase specialized policies such as Crime and Fidelity, and Boiler and Machinery. Members may also receive assistance from WCIA in the purchase of coverage for Underground Storage Tanks, Airport Liability, Bonds and Worker's Compensation.
Each member's assessment largely reflects its own loss experience, its potential exposures and a percentage of pool services. Assessments are developed by a professional actuary and openly approved by the Full Board.
Litigation and Claims Management
WCIA believes in fair and equitable claims handling. If a member is liable, we strive to pay what is owed in a timely matter. However, should the member not be liable, WCIA takes and aggressive approach to litigation, as opposed to loss settlement for cost saving purposes. Each member has direct participation in its claims and litigation, both in pre- and post-loss stages. WCIA shoulders the cost of defense to allow the member complete focus on the issue.
In 1989 WCIA implemented the Pre-Defense Review Program to assist members with legal review of situations prior to taking action. This pre-emptive review is considered an invaluable service to our membership.
COMPACT and Risk Management
WCIA believes a formal, comprehensive training program, coupled with aggressive field risk management services, systematically reduces risk of loss and supplements city operations. Aggressive risk management is an essential, required element of pool membership.
The COMPACT was instituted to create member accountability and adherence to effective risk management practices. Because members are pooling their financial resources, completing the required elements of the COMPACT provide an assurance to each member that their resources and efforts toward managing risk are being matched pool wide.
As part of the COMPACT, members receive an annual risk management performance audit that reviews individual departments and risks. Additionally, members must complete a series of mandatory trainings associated with the chosen department audit along with a minimum of two other trainings related to good risk management practices.
In 1996, WCIA received the PRIMA Pooling Section Award for establishing the COMPACT, recognizing the innovative tracking and measurement of both pool-wide municipal risks and individual member exposures.
Training
WCIA offers its members a wide variety of relevant and cutting-edge training topics at no additional cost. Topics encompass municipal issues such as land use and public records disclosure, as well as up-to-date litigation and legislative decisions.
Training opportunities are offered State wide and on-site to provide personal consulting from experienced vendors, WCIA staff and through co-sponsorship with other municipal agencies. Trainers from police, fire and other departments are all encouraged to call WCIA for specific needs, subsidizing department budgets in activities such as EVOC, NPSI, IMSA, employee certifications and association events.
|
