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2014 Financial Performance Review

In 2014, members of the CSD Pool suffered historic losses in numerous areas. The Pool drew on its strong financial position to absorb those losses without reduction in coverages or services. The Pool currently retains $17.1 million in surplus. Although this is down $1.2 million from the prior year, it is still more than double what the Division of Insurance requires. This financial strength allows the Pool’s Board to maintain steady rates and expand member programs, such as spending more than $600,000 in safety and loss prevention funding this year alone.

Pool members experienced a large number of fourth quarter claims in Workers’ Compensation with numerous adverse developments from 2011 and 2012. It should be noted that Colorado special districts continue to have workplace incident rates that are roughly three times higher than the national average for comparable private industries. Potentially debilitating workplace injuries are a serious enough problem, but 2014 also saw three district employees lose their lives during the course of their duties. These deaths represent both an immeasurable human loss and a significant financial cost as well.

Employee injuries combined with increasing Auto Physical Damage claims and large storm activity on the Property lines contributed to the fifth year out of the last six with uncommonly large losses. Projections in other lines, such as Liability, did well despite the losses in Property and Workers’ Compensation.

This unfavorable performance has prompted us to analyze our data closely to uncover issues with specific entity types or lines of coverage. Once these issues are identified, we can divert additional resources toward preventing those losses and ensuring that our workplaces are safe.

Fostering a safe work environment is both the professional duty and moral obligation of every manager and board member. Ensuring that your employees return home safely from work each day is not only the right thing to do, but is also in the best interests of the Pool and its members.

You already know that the Pool provides numerous services that can help you improve the safety conditions at your district, but none of our programs are an adequate replacement for a comprehensive culture of safety that has been tailored from within your own organization. An actively engaged safety committee comprised of members from district leadership is your best weapon in the fight to improve safety outcomes for your employees, volunteers, and visitors.

Maintaining a constant culture of safety where no unsafe condition is tolerated and participating in ongoing training programs is a vitally important step in improving outcomes not only in regards to employee safety, but also in strengthening the Pool and providing enhanced security for years to come.

Although the last few years have had their share of challenges, we remain focused on delivering the highest possible level of service and value to Pool members. We are dedicated to carrying out the Pool’s mission and values while constantly seeking ways to improve to place ourselves in the best position to navigate whatever challenges and surprises may arise in the future.

2014 Financial Data

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