Municipal insurance, long a significant cost for local governments, could soon become more affordable for communities across Simcoe County. A new initiative, presented by county officials to Penetanguishene’s council, has generated growing interest in the creation of a regional insurance pool, a move that promises both financial savings and enhanced risk management.
During a recent Penetanguishene council meeting, Ryan Durrell, chief information officer and principal broker at Axxima Insurance Services, alongside Trevor Wilcox, Simcoe County’s general manager of corporate performance, outlined the benefits of the proposed insurance pool. A report from MidlandToday.ca noted that this initiative is modelled after similar programs in other regions, such as the Waterloo Region Municipalities Insurance Pool, which was established in 1998, and the Durham Municipal Insurance Pool, created in 2000.
Durrell highlighted the rising cost of municipal insurance, noting a stark shift in the market dynamics since the early 2000s. “Starting around the early 2000s, we had the longest and most prolific soft insurance market with prices regularly reducing over that 15-year period until about 2019, (when) everybody realized that the insurance premiums were going up significantly over the following few years,” he explained.
Under the proposed plan, municipalities in Simcoe County would have the option to join a collective insurance pool that would offer substantial savings. For instance, while Simcoe County’s projected insurance premiums for 2025 amount to $20.6 million, Durrell emphasized that current premiums allocate 34% to claims, with the remaining 66% directed elsewhere, such as administrative costs and other expenditures. The pool, by contrast, would streamline these costs, providing “best in class” coverage and saving municipalities up to 19.2% — an estimated $4.3 million.
To illustrate the value of such a pool, Durrell likened it to the difference between preparing meals at home and dining out. “Self-insurance is very much like making your own meals at home, and insurance is very much like dining out at restaurants; both have their places,” he said. The goal, he noted, is to provide more comprehensive coverage for municipalities, while lowering premiums and redistributing financial responsibility among all participating members.
Penetanguishene’s mayor, Doug Rawson, expressed strong support for the idea. “Penetanguishene is going to realize about $400,000 in savings,” he said following the presentation. He also emphasized the importance of pooling resources for enhanced risk management. “This pooled approach is very positive, but more importantly, it provides depth for risk management expertise – where we can lean on the strength that the county can put in, but it’s being paid for in concert with the other 16 municipalities and the county of Simcoe,” he said.
Wilcox underscored the urgency of municipalities joining the pool as early as possible. It would be most beneficial for municipalities to sign on initially, he advised, encouraging them to commit before mid-February for a five-year term.
Penetanguishene’s council has approved a recommendation to join the pool as a founding member. The decision will be up for possible ratification at an upcoming regular council meeting.
A full presentation on the insurance pool, along with a report from the town, can be found on the Town of Penetanguishene’s website.
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