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SYRACUSE - Good news doesn't help much when the bad news is more pervasive.
Tuesday, Wawasee Community School Corp. Director of Finance Jim Evans told the school board he had both good news and bad news for them regarding the school corporation's insurance.
"The good news was our loss ratios were in line. The bad news was - that didn't make any difference," he said.
Wawasee schools has insurance through Indiana Insurance Co. Their total program premium that is expiring is $206,961. Their renewal premium, which began Jan. 1, is $292,237. Included in the premium is workers' compensation, commercial umbrella, commercial automobile policy and their package policy, which includes insurance for property, general liability, boiler and machinery, inland marine, crime, garage liability, school leaders errors and omissions liability and sexual misconduct and molestation liability.
Evans said Indiana Insurance Co. insures most schools in Indiana, both profitable and nonprofitable, which is something Wawasee has no control over but affects insurance premiums. Also, due to the events of Sept. 11, the insurance industry has been hit hard, also a factor Evans said the school corporation has no control over but does affect them.
Board president Brian Dawes asked if the workers' compensation could be separated and bidded out to other insurance companies in the future. Evans replied it was something they could look at but they try to keep all their insurance needs in one package.
Asked if the Indiana Insurance Co. was a type of monopoly, Wawasee Superintendent Dr. Mark Stock said they don't want to be a monopoly. They have been told the company thinks some competition would help the market.
Jeff Wells, board member, said he didn't think there was anyone else out there for the school corporation to get insurance through. It's a "bear" out there, he said, getting insurance renewed as it is, and then getting it at a reasonable rate is even more difficult. While insurance companies are pointing to Sept. 11 as the reason for the rate increases, the weak stock market has a lot to do with the rates. If more insurance companies don't want to get involved with public corporations, the only one for Wawasee's insurance is Indiana Insurance Co., he said.
Three years ago, Evans said, Wawasee had a bad year for loss ratio but hasn't had one since. If they don't have a bad loss ratio this year, Wawasee will have three good years and may benefit from that.
The insurance premium was then unanimously approved by the school board.
