As we step into Q2 of 2025, we're reminded once again that the insurance landscape—especially for Public Entities—remains dynamic. While price volatility has eased compared to recent years, the need for investment in facility improvements and safety best practices is, in many ways, at an all-time high. Gone are the days of risk pools and programs that offer renewals to all members with terms and pricing changes that mirror one another, regardless of performance. We've entered a time when individual account performance, both claims history and proactive loss control initiatives, will determine future renewals.

Given this shift, our team is investing in ways to help guide clients on which investments make the most sense. A couple of those are outlined below:

Qualitative & Quantitative Analysis

Forgive me for nerding out on this, but I recently completed the Certified Risk Manager course titled Risk Analysis. One of the main takeaways was understanding that, with risk management investments and initiatives, we need to factor in both qualitative and quantitative analysis to get the full picture of whether an investment makes sense for an organization. Some notes on this process here:

1. Qualitative analysis answers the question, “Should we do this?”. It is hard to measure precisely and requires a level of flexibility in the analysis.
   
2. Quantitative analysis answers the, “How much this is going to cost?” and provides a better level of guidance on cost versus upside and/or ROI.
   
   
3. Curious About the Math Behind Risk Improvement? Here’s a quick breakdown of what we’re exploring:
   
   
   1. Net Present Value (NPV) Calculations – We’re looking at both 1) Single-sum cash flow events and 2) ongoing annuity-style payments.
      
      
   2. Quantitative Analysis for Loss Control - Using assumptions, we can estimate the upfront cost of improvements today and future premium savings and improvements that may result
      
      
   3. Easy Wins: Workers’ Comp & Employee Safety - The qualitative case is obvious — keep our people safe, and the quantitative case is where it gets interesting.
      
      
   4. Key Questions We’re Asking –
      1. What’s the cost of implementing fee-for-service safety solutions?
      2. If improvements follow, how does that affect our future MOD (experience modification rate)?
      3. What are the potential dollar savings from those changes?
      4. Does the math justify the investment?
         
         
4. Ready to Dive In? If you’re interested in how we evaluate risk improvement strategies, let’s chat! On the next page, you’ll see the team members we’re working with to support these efforts.

Additional Team Members

Department Premium Allocations

One of the biggest challenges we hear from prospective clients is getting support in allocating risk management and insurance expenses across their various departments.

Our team has developed a process for allocating premiums that helps decision-makers understand where costs are being borne. By identifying where insurance costs reside, we can better target loss control efforts toward the departments that are driving those costs and potentially reduce the associated premiums.

Additionally, breaking these costs out is considered a best practice for budgeting purposes, especially for municipal clients.
Reach out to learn more about how we’re helping clients solve these challenges.

First MainStreet Insurance's Public Entity Specialty Group team is looking to grow the base of the clients we serve throughout Iowa. We have a process that prompts conversation around what the current state is of your organization’s risk management and insurance setup, as well as ideas on how to improve that situation moving forward.

If you’re open to learning more, below are recommended next steps:

1. Schedule an intro meeting with our team. This will allow us to learn more about your organization, share about our process, and mutually conclude if we might be a good fit to work together. To schedule this intro meeting, simply click here: FMSI Public Entity Scheduler.
2. Complete our abbreviated discovery assessment, which is a survey that provides us feedback on areas you are already supported well or that our team could help provide value. The survey takes approximately 5-10 minutes to complete, and is linked here: FMSI Public Entity Pathfinder Assessment.

Let’s Connect

We are excited to provide this quarterly bulletin newsletter with real and relevant information pertaining to the industry we serve. You’ll continue to receive these with more value-based content contained. This newsletter is simply to serve as an introduction. If you are interested in a specific discussion on your organization and how we might explore partnering together, there are two options:

1. If you recognize any of the FMSI partner agencies shown on the next page, reach out to the local team directly and ask about our Public Entity Specialty Group. They can reach out to us and set up a meeting amongst our teams.
2. If you’d like to schedule an intro call with us directly, click the link below to do so using our scheduler app.
3. To learn more about our FMSI Partner Agencies, click here.

Thank you for reading. I look forward to any and all future discussions with you and your team!

First MainStreet Partner Agencies: Locations

First MainStreet Partner Agencies: Names