alan connolly

LAMA AUTUMN SEMINAR 8TH OCTOBER 2010 - LISTOWEL

GEORGE JONES, MCC, TCCHAIRMAN

IRISH PUBLIC BODIES MUTUAL INSURANCES LTD

1926 – 2010

LAMA AUTUMN SEMINAR 2010

ALAN CONNOLLYGENERAL MANAGER

1926 – 2010

Irish Public Bodies Mutual Insurances Ltd.

Established in 1926 by an Act of the Oireachtas to provide insurance cover to local authorities

To provide a comprehensive insurance and risk management service

Licensed: – same as Commercial Insurers – supervised by Financial Regulator - same solvency requirement

Initially underwrote only Fire, then Liability (1960s), Motor (1970s)

Client Base Local Authorities – all their activities Health Service and Hospitals Education – second and third level Miscellaneous clients

Formation of the company

General Council of County CouncilsDublin County CouncilLouth County CouncilOffaly County CouncilCo Sligo Board of HealthTuberculosis Management Committee of Co

DublinCo Louth Board of Health

IPB clients

County councils

City councils

HSE

Borough/town councils

Vocational Education Committees

Enterprise Boards

Institutes of Technology

Regional authorities

Third level institutions

Harbour commissioners

Drainage boards

Library committees

Insurer to local, health & education authorities

• Public Liability• Employers Liability• Property – Fire & perils (Money,

Burglary, Storm, etc)• Professional Indemnity• Motor• Computer, Engineering, Travel,

Personal Accident

Services

• Insurance Cover• Claims Handling• Risk Management• Health & Safety• Risk Transfer• Contractors’ Insurance Advisory • Property Valuation

Insurance Sector

2009 Premiums down 6% - Claims up 6%

November Floods – January Freeze Cost of €541m exceeded total cost of all

weather claims in last ten years

Indications of premium increase – Motor & Home

IPB

• Chairman reported in detail to AGM in May

• 2010: 10% premium reduction

• Financial Regulator: Intrusive …

• Stringent requirements: NB high profile issues

• IPB financial strength: Financial Regulator minimum solvency requirements

x 16 times

IPB

EXPENSE RATIO

Axa – 26.8% FBD – 24.8%

RSA – 24.2% Hibernian 17.6%

Allianz – 17% Zurich – 16.9%

IPB – 15.4% Quinn in Admin – 8%

Position in market 2009: data IIF Factfile 30 August 2010

9th largest by GWP

1st in Liability segment by GWP

Members

• Personal Accident Schemes A & B Scheme A: attending official LA functions,

including travel Scheme B: 24 hour cover

• Including Loss of Representational Payments due to serious illness

• Travel insurance under County Council policy

IPB Board proposal

PL Insurance Scheme Cover for Councillors

IPB are willing to offer a public liability policy to elected councillors in respect of their legal liability for third party bodily injury and/or property damage arising out of and in connection with the running of constituency clinics in the Republic of Ireland.

Premium €50 + 3% levy.

Group Life Scheme - Councillors

Scheme proposal: provide life cover for councillors

Only on a compulsory basis

The insurer would require member profile numbers/genders

No medical questions required to be answered provided members are actively at work.

Continuation option could be available when member resigns or loses seat.

Possible Capital Benefit €20,000

Premium €x per annum per member – one payment each year.

Requirements

• Met reps of ACCC, LAMA, AMAI, IVEA

• Positive reaction

• Profile of councillors – age/gender

• Administration: central deductions

LAMA Autumn Conference

THANK YOU!