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CAJPA Public Entity Tort Liability Project Update - June 12, 2020

In late 2019, CAJPA leadership, with support of many of our pool members, commissioned the CAJPA Tort Liability Data Analysis Project. This endeavor took place after two years of thoughtful dialogue and research. After an RFP process was conducted, Aon was selected to undertake this study with Julie Theirl as the Project Manager and the support of others from Aon including Craig Bowlus and Mujtaba Datoo. In addition, Aon is partnering with Bickmore Actuarial who will assist with the actuarial portion of the project.

We greatly appreciate the financial support many of our members have provided. Our hope is to have full participation from California’s risk sharing pools to help CAJPA offset the cost of this essential project. To date, the following pools have stepped up to help fund the Tort Liability Project:

  • ACWA JPIA
  • Authority for California Cities Excess Liability (ACCEL)
  • Bay Cities Joint Powers Insurance Authority (BCJPIA)
  • Butte Schools Self-Funded Programs (BSSFP)
  • California Association for Park & Recreation Indemnity (CAPRI)
  • California Joint Powers Insurance Authority (CJPIA)
  • California Joint Powers Risk Management Authority (CJPRMA)
  • California Sanitation Risk Management Authority (CSRMA)
  • California Schools Risk Management JPA (CSRM)
  • Central Region School Insurance Group (CRSIG)
  • Central San Joaquin Valley Risk Management Authority (CSJVRMA)
  • CSAC EIA/PRISM
  • Fire Agencies Insurance Risk Authority (FAIRA)
  • Golden State Risk Management Authority (GSRMA)
  • Independent Cities Risk Management Authority (ICRMA)
  • Municipal Pooling Authority (MPA)
  • North Bay Schools Insurance Authority (NBSIA)
  • Public Agency Risk Sharing Authority of California (PARSAC)
  • Public Entity Risk Management Authority (PERMA)
  • Redwood Empire Schools Insurance Group (RESIG)
  • San Mateo County Schools Insurance Group (SMCSIG)
  • Santa Clara County Schools' Insurance Group (SCCSIG)
  • Schools Excess Liability Fund (SELF)
  • Schools Insurance Authority (SIA)
  • Schools Insurance Group (SIG)
  • Self-Insured Schools of California (SISC)
  • Special District Risk Management Authority (SDRMA)

We know many other CAJPA members are considering providing financial support and we want to thank them as well and offer to provide any additional information they made need to aid in their decision.

The project has two phases. In summary, Phase One, which is nearing completion, involves the collection of ground up, uncapped loss data from all types of entities for all types of tort exposures. The goal of this phase is to gain an accurate perspective of California public entity loss exposures while also helping to form a road map for the next phase of the project. Phase Two will consist of a deeper analysis of certain types of tort losses (yet to be determined). It’s anticipated that losses greater than $500,000 will be analyzed to look for tort reform opportunities. Of particular interest will be claims that contain joint and several liability as well as inverse condemnation. Other areas of focus will be revealed during the analysis of these large losses as part of Phase Two.

The goal is to have the results of the project available by the end of 2020. CAJPA will be reporting out the results first in a members-only forum. Data for this project has been provided by:

  • Authority for California Cities Excess Liability (ACCEL)
  • ACWA JPIA
  • Bay Cities Joint Powers Insurance Authority (BCJPIA
  • CalTIP
  • City of Fresno
  • California Joint Powers Insurance Authority (CJPIA)
  • California Joint Powers Risk Management Authority (CJPRMA)
  • County of Los Angeles
  • CSAC-EIA/PRISM
  • Central San Joaquin Valley Risk Management Authority (CSJVRMA)
  • Employment Risk Management Authority (ERMA)
  • Independent Cities Risk Management Authority (ICRMA)
  • North Bay Schools Insurance Authority (NBSIA)
  • Redwood Empire Schools Insurance Group (RESIG)
  • San Diego Transit
  • Schools Association for Excess Risk (SAFER)
  • Special District Risk Management Authority (SDRMA)
  • Schools Excess Liability Fund (SELF)
  • Schools Insurance Authority (SIA)
  • Schools Insurance Group (SIG)
  • Self-Insured Schools of California (SISC)

We are coming to the conclusion of Phase One. Anticipated Phase One deliverables include:

  • Summary of the data including how it has trended over time
  • Claims at varying values to help us determine the Phase Two data parameters
  • Claims statistics by subset (cities, counties, schools, special districts, etc.)
  • Data geographically (Northern California vs. Southern California)
  • Portion of the total California public sector that has been captured in the study

The consultants will be presenting their initial Phase One findings next week to the project’s Advisory Committee. The Advisory Committee, who is guiding the project through to its conclusion, is comprised of:

  • Andy Sells, ACWA JPIA, Committee Chair
  • Craig Schweikhard, SMCSIG
  • Janet Selby, NSBIA
  • Martin Brady, SIA
  • Mike Pott, CSAC-EIA/PRISM
  • Tony Giles, CJPRMA
  • Doug Ross, SAFER
  • Erike Young, PARSAC
  • Stephan Birgel, ASCIP
  • Laura Gill, SDRMA
  • Chrissy Mack, CalTIP
  • Lam Le, CJPIA
  • Norman Lefmann, CJPIA

A Phase One report out to the CAJPA Board of Directors will take place on Friday, June 19, 2020 at their Board meeting.

To give you a snapshot, to-date we have $8.1B in losses representing 322,000 claims. Of those claims, nearly 3,000 claims have a total incurred value of $500k+ which will likely be the data set for Phase Two. Aon’s team just received loss runs from the last three JPAs which are being aggregated into the study now, so these numbers will change.

After the full completion of this project, CAJPA is hopeful that we will have sufficient data to educate policymakers with a goal to ultimately reform the tort system for public entities in California. We will continue to provide updates as the project moves forward.

If you have questions or need additional information, contact CAJPA Executive Director Catherine Smith at casmith@cajpa.org.