CIRA maintains a financially stable risk sharing pool applying a conservative funding and investment philosophy to limit potential for pool-wide assessments. A conservative funding philosophy not only ensures sufficient assets are available to pay expected losses but also builds program surplus in the event of adverse loss development.
As a public agency, we are not driven by profit; surplus is returned to members as dividends. Staff works with the Finance and Executive Committees to develop an annual budget. We maintain accountability and transparency through quarterly financial reporting.
Member Contributions
The Liability and Workers’ Compensation programs are experience-rated, meaning member contributions are adjusted based on loss experience, ensuring equitable distribution of costs. This approach is responsive to the members’ most recent loss experience, incentivizing loss prevention. Changes to the experience modification factor are capped at 25% to minimize volatility. Each member is allocated a pro-rata share of the total funding requirement based on: payroll, self-insured retention, ex-mod, administrative expenses and excess insurance.
Member Dividends
Savings are returned to members through the Retrospective Premium Adjustment (RPA) process. The RPA is an annual reconciliation of member contributions to expenses for each fiscal year to determine each member’s equity.