In a recent meeting with the Hubbard County Board, Richard Miehe, a risk management consultant for the Minnesota Counties Insurance Trust (MCIT), provided insight into the organization’s operations and discussed the current insurance rates for the county.
MCIT, a risk-sharing pool for county governments, has been serving Hubbard County for nearly four decades out of the organization’s 46 years in existence. With 81 out of 87 counties in Minnesota as members, MCIT offers various services including claims handling, risk mitigation, loss control, and procuring reinsurance for catastrophic claims.
Miehe highlighted the challenges faced by MCIT in managing costs, especially with the rising expenses associated with claims and reinsurance. To address this issue, MCIT increased the per claim retention for liability reinsurance from $850,000 to $1 million, resulting in a 21% reduction in premium costs. Despite these efforts, the total insured values have seen a significant increase of $2.6 billion or 39% over the past five years.
The county’s property and liability aggregate rate saw an 11.2% increase from 2024 to 2025, while the workers’ compensation aggregate rate increased by 4%. Miehe also noted a concerning rise in cyber claims, although there was a decrease in severity. He emphasized the importance of cybersecurity measures such as security, technology, and education to prevent cybercrimes, particularly misdirected payments and spoof invoice scams.
Addressing a question from county commissioner David La Hunt regarding the challenges in prosecuting cybercriminals, Miehe pointed out the use of cryptocurrency by perpetrators to evade detection. He also highlighted Minnesota’s high rate of business email compromise claims, suggesting a possible trust issue among residents or better cybersecurity protocols in other states.
Overall, the meeting shed light on the complexities faced by county governments in managing insurance costs and mitigating risks in a rapidly evolving technological landscape. As cybersecurity threats continue to evolve, it is crucial for organizations like MCIT to adapt and strengthen their defenses to protect members from potential financial losses and data breaches.