The Carroll County Board of Supervisors is looking at an approximately 18-percent increase in its commercial insurance renewal rates for the coming year. During their meeting this (Monday) morning, the board reviewed the new rates with Terry Axman of Mid-Iowa Insurance and Real Estate. According to Axman, Carroll County’s claims have averaged about $55,000 per year in recent years, which is comparable to similarly sized counties. Unfortunately, the county’s exposure, or what assets are actually being insured, has gone up significantly.
Compared to most forms of private insurance, only a few companies offer coverage to cities and counties, and the lack of competition does not help keep costs down.
Because Carroll County is one of the 70+ counties that are members of the Iowa Communities Assurance Pool (ICAP), it can sometimes pay the price for multiple, large-scale claims in other parts of the state, such as the 2020 and 2021 derechos that hit central and eastern Iowa. Axman says there is little Carroll County could have done to avoid the rate increase.
The total 2023 renewal rate was $338,000 from $279,000 in 2022, a $59,000 difference. The supervisors did not take action on the proposed renewal rates Monday morning. The issue is expected to return to the board’s agenda at a future meeting for formal approval.
