Tay Township has approved becoming a founding member of a proposed municipal insurance pool, a collaboration aimed at reducing rising insurance costs for municipalities in Simcoe County.
At a recent council meeting, Ryan Durrell, chief insurance officer and principal broker of Axxima Insurance Services, presented the proposal. The plan involves pooling resources with other municipalities in the country, a model similar to those already implemented in Waterloo Region and Durham County.
Municipalities in Simcoe County are projected to spend $22.4 million on insurance costs in 2025, with $20.6 million allocated to premiums under the current system. The proposed pool aims to lower this amount to $18.1 million, redirecting funds into three categories - $8.4 million for pool retention, $7.7 million for excess insurance premiums, and $2 million for municipal deductible losses.
Durrell estimated that the pool could generate savings of up to 19.2%, equivalent to about $4.3 million country-wide.
For Tay Township, the potential savings include $587,000 in direct costs over five years and an additional $488,000 in equity accumulated within the pool.
Durrell explained that the program's success depends more on premium volume than the size of participating municipalities, requiring at least 50% participation. He noted that the county and several municipalities had already committed, surpassing the minimum requirement.
During the discussion, Mayor Ted Walker expressed support for the initiative. "At county (council), it seemed to be a great opportunity for Tay Township," he said, adding his appreciation for the clarity of the presentation.
The council subsequently approved joining the insurance pool as a founding member.
Details of the municipal insurance pool presentation and related staff report are available on the Tay Township website.
