PennPRIME is a member-driven, self-insurance trust that works with and is owned exclusively by Pennsylvania municipal entities. Our uniqueness stems from the fact that we continually deliver added value through our specialized products and services including custom coverage, solutions that reduce our members’ risk, and building member equity.
The PennPRIME Liability Trust was formed in 1987 in response to commercial insurance carriers’ withdrawal from the municipal insurance market. The Trust was designed to provide broad, cost-effective and stable coverages to meet the special needs of municipal entities. We believe in aggressive and responsible claims handling and do not believe in settling suits unless it is prudent to do so. The PennPRIME Workers’ Compensation Trust was formed in 1993 to provide an alternative to the workers’ compensation commercial insurance market.
After the PennPRIME Trusts pay for excess/reinsurance premiums, administrative expenses and claims, remaining funds are reserved for the members and earn interest that accrues to the members. (Compare this policy with a commercial insurance company, where that same money earns interest for the insurance company and becomes the insurance company’s profit.) The PennPRIME Trusts only insure municipalities and entities created by municipalities, so the other entities with which you share exposure have the same coverages you do. This means coverage rates can be based on your loss experience, not on the experience of the private sector, which may vary greatly from municipal entity losses.
An insurance trust is a collective of members that join together to obtain insurance coverage. Trusts are often compared to mutual insurance companies. Members have a voice in governing the trust, electing board members and serving on the board and/or committees. Bylaws explain how the trust is operated and can only be amended by the trust’s members. This means members control the trust and have input into its direction, operation and coverages.
The benefits of trust membership include broad coverages, personal service, input into trust operations, and a package of services that is much more specialized than those available from a commercial insurance company. Our goal is to help municipal management see the big picture in risk reduction and loss control. Over time, trust members can expect stable rates, new services, and even the potential for dividends.