There’s one more going for a swim.
The Town of Innisfil will join a number of other municipalities jumping into the Simcoe Municipalities Insurance Pool. The decision was made during a Jan. 29 town council meeting.
“It’s a no-brainer for us,” Mayor Lynn Dollin said. “Not only the cost savings, but how hard it is to even get insurance in the first place. There’s very few options. This is a great opportunity for us and for all Simcoe County municipalities.”
The pool is set to launch June 1. It is a county-based program that will give the county’s member municipalities reduced rates and greater control over their insurance spend.
Innisfil joins more than a dozen municipalities — including New Tecumseth, Penetanguishene, Oro-Medonte, Orillia and Springwater — to commit so far.
“Coverage will be under a single policy, with each municipality having access to the highest limits under each coverage,” said Ryan Durrel, of Axxima Insurance Services, in a presentation to Innisfil council. “Except for coverage nuances from carrier to carrier, coverage will be at least as good as expiring, and in some cases better.”
Expected cost reduction within the pool model could be leveraged to generate an overall direct savings to municipalities of 19.2 per cent, when compared to the status quo, he said.
The town currently coordinates insurance coverage for itself and InnServices. However, the utility is looking at whether to continue with the town’s insurance program as part of the county pool, or to join a different one altogether.
In 2025, the estimated cost of insurance premiums for both Innisfil and InnServices is $1.5 million (about $930,000 for the town and $570,000 for InnServices).
“The cost of insurance is a significant expense which has seen drastic increases over the past 5-10 years,” legal and clerk services manager Lee Parkin said in a report. “By joining the proposed Insurance Pool with other County Municipalities, the Town could save a significant amount on premiums. The savings that will be realized by moving to this type of insurance program will ensure more direct control over premium costs and assist with long-term financial health and sustainability.”
According to county corporate performance general manager Trevor Wilcox, municipalities that join the pool will pay 10 per cent less to the pool than their insurer and will have the option to become "founders.”
“All founders get in,” Wilcox said recently. “They pay their premium, start getting equity in the organization and they are the decision-makers.”
Municipalities that don’t join the consortium at the start will have to wait five years for their next potential opportunity to sign up.
The county is launching the program following a review that cost about $500,000.
Wilcox says the municipalities and county spent a total of about $16 million on insurance coverage last year, with about one-third — or roughly $5 million — covering claim costs. The remainder went to profit and administration costs.
Under the pool program, which will require the county to hire between six and eight staff to administer, the costs and benefits are managed in-house.
An individual municipality is responsible for paying the deductible — $10,000 to $100,000 — depending on the category, such as liability, property or auto.
The pool pays the next $490,000 to $400,000, to a maximum of $500,000, dependent on the deductible amount. Then the insurer pays everything over $500,000.
— With files from Wayne Doyle