In a recent government meeting, officials discussed the significant rise in liability and property insurance costs affecting Tuolumne County. The meeting featured a presentation by Gina Dean, CEO of PRISM, and Kevin Bibler, Senior Vice President of Alliant, who provided insights into the factors driving these increases.

The county's budget presentation highlighted a steep increase in liability insurance premiums, prompting questions from both the board and the public. Dean explained that PRISM, a joint powers authority that pools risk among public entities in California, has seen a dramatic rise in claims costs over the past five years. This trend is attributed to a surge in claims across the state and the nation, with Tuolumne County experiencing a notable uptick in its own claims expenses.

Bibler elaborated on the challenges posed by a \"hard market\" in commercial insurance, where fewer carriers are willing to underwrite public entity liability business. He noted that catastrophic claims have escalated, with verdicts exceeding $10 million becoming increasingly common, a phenomenon referred to as \"nuclear verdicts.\" This trend is exacerbated by social inflation, where claims costs rise faster than general economic inflation, driven by factors such as increased litigation and larger jury awards.

On the property insurance front, the presenters indicated that while rates have risen due to catastrophic losses from natural disasters, there is hope for stabilization in the market. PRISM has begun self-funding a portion of its property program, which could lead to cost savings for members in the long run, despite recent historic losses.

To address these challenges, PRISM is actively working to improve its programs and pricing structures, ensuring equitable premium allocation among members. The organization also emphasizes risk management and legislative advocacy to mitigate rising costs.

As the county navigates these insurance challenges, officials remain focused on finding solutions to manage expenses while maintaining adequate coverage for public services.