Managing Risks Together
Tailored Coverage, Valuable Service, Member Focused
Minnesota Counties Intergovernmental Trust is not an insurance company. Rather, MCIT is a risk sharing pool dedicated to providing coverage and risk management services for its members, Minnesota counties and associated public entities. MCIT is a joint powers entity established in 1979 pursuant to Minnesota Statutes 471.59 and 471.981.
As a public entity, MCIT understands the unique challenges facing local governments and offers ways to address those risks.
The MCIT Mission
Providing Minnesota counties and associated members cost-effective coverage with comprehensive and quality risk management services.
MCIT routinely considers modifications to coverage to address the changing exposures members have, and the MCIT staff develops programs and services designed to help members mitigate those exposures.
Learn More About MCIT-provided Lines of Coverage
MCIT monitors legislation, court rulings, operational changes, the economic landscape, claims and member input to identify strategies to help members manage existing and emerging risks.
Learn More About Services to Assist Members in Managing Risks
MCIT membership is limited to Minnesota counties and associated public entities. This means that MCIT focuses solely on meeting the risk management needs of this select group.
- Member-elected board of directors
- Long-term rate stability achieved through risk sharing pool structure
- Specialized coverage for county-level public entities (e.g., land use decision making, data practices, law enforcement canine, dams)
- Potential dividend: When financially prudent, MCIT returns excess funds to members
The 2024 MCIT Annual Report shares important challenges and accomplishments of the trust and its financial stability for the fiscal year of 2024.
The 2024 Audit Report includes the audited financial statements and notes for MCIT.
MCIT Is a Risk Sharing Pool; What Does That Mean for Members?
Generally a risk sharing pool is where similar organizations pool funds to cover claims and operate the pool. Annual contribution is based on what is projected to be needed to cover costs for the year. There is no profit motive. In contrast, an insurance company is a for-profit business.
According to the Association of Government Risk Pools, 10-15 percent of commercial insurance premium is the built-in profit margin.* With no profit motive, risk sharing pools add no profit margin to members’ annual contribution.
Risk sharing pool members benefit in a number of other ways in comparison to purchasing commercial insurance. The table below highlights some of these.
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| Governed by a board of directors of representatives from member counties
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Governed by a board of shareholders
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Together the claim experience of all members is used to calculate rates for property and liability
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Individual entity’s claims experience dictates its premium cost
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| Does not drop an individual member entity from coverage if its claims experience is overly adverse |
May deny renewal of coverage for customers that are “too risky” or increase premium to the point of being cost-prohibitive
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View relationship with members as a partnership
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View relationship with customers as transactional |
Harness power of group leverage and public entity status to contain costs:
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Commercial insurer has more costs than a public entity risk sharing pool. Costs are passed on to insureds as part of premium:
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| Provide tailored coverage to unique exposures of homogenous membership (e.g., law enforcement liability, K-9 coverage, land use defense, class 3 dams) | May not offer coverage for significant areas of risk for local public entities |
Perspective that it is the member’s money and is used to cover claims and provide services
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Perspective that it’s the company’s money and as much of it is kept for profit as possible
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*Association of Government Risk Pools, “PR Toolkit for Public Entity Pools,” AGRiP.org.