Recent large claims and high reinsurance rates have resulted in an average 15% increase in renewal rates.
PACE was formed by intergovernmental agreement to jointly self-insure to protect members from liability and property claims. PACE is not an insurance company; it is a trust governed by a board of PACE members. Oregon law, under ORS 30.282, specifies that self-insured local government programs such as PACE must annually set their rates based on proper actuarial calculations and must purchase reinsurance to protect against catastrophic loss. PACE worked hard to lower this increase as much as possible; the rate increase would have been closer to 23%, but thanks to the interest earnings from our claim reserves, PACE was able to lower it to 15%.
In addition to sexual abuse and molestation claims, cybersecurity is becoming increasingly harder to insure as schools become prime targets for cyber attacks. To help with this, PACE contracted with Eide Bailly to analyze and mitigate any potential safety or claims risks. Frank Stratton, the Executive Director of SDAO, gave a thorough explanation about the rate increase and cybersecurity in the PACE Day 2021 Business Update. You can watch the 10 minute video below.
Remember, PACE is always here to help you mitigate and prevent risk and claims. Please do not hesitate to reach out to us with any issues or concerns.