MCIT briefs board on insurance risks, cyber claims and dividends

The Minnesota Counties Intergovernmental Trust (MCIT) presented its annual risk and financial update to the Stearns County Board of Commissioners on Oct. 5, outlining reinsurance cost trends, cyber-claim spikes and member resources for risk management.

MCIT Executive Director Garrett Claybaugh described the pool’s role as a joint powers risk pool created in 1979 and said MCIT insures 81 counties and roughly 400 affiliated entities. He noted property reinsurance costs have risen, stating the program’s property reinsurance was about $4.8 million in 2025 and stressing the value of reinsurance as a catastrophic-loss backstop.

Claybaugh said cyber claims show high year-to-year variability: 76 claims in 2023 contributed to an approximately $1.7 million cyber claim expense that year; individual large incidents may affect multiple member entities. He described MCIT’s focus on returning excess funds as dividends when appropriate; MCIT paid a $3.5 million dividend last year and plans a $1.5 million dividend in 2025.

Claybaugh encouraged counties to use MCIT resources — training, contract-review risk management, and cyber and safety programs — to reduce claims exposure. He told commissioners that MCIT will continue to bid reinsurance annually, monitor retention levels and work with members to curb claim frequency and severity.

Commissioners asked questions about claim drivers and dividends; MCIT staff said details could be provided to county staff for follow-up. The presentation was informational; no board action was required or taken.