Municipality insurance New York was faced with a daunting challenge. Insurance companies have a bad reputation, but insurance is a necessary evil. By spreading risk, the possibility that an unforeseen event will result in a catastrophic loss is significantly reduced or eliminated. How is a government entity supposed to live up to its responsibilities to protect public holdings without falling victim to rapacious insurance companies?
Enter the notion of captive insurance as defined by Frederic M. Reiss in the 1950s. The idea involves establishing a secondary entity that handles insurance needs and determines the administration and amount of surety payments. This gives more control to the insured and reduces the cost. Thus taxpayer property is protected, and the cost of that protection is reduced.
In 1993, municipality insurance New York delivered on its promises to keep insurance costs low while protecting the interests of citizens. It developed a program that allowed it to insure New York government property and employees while keeping the cost of that insurance reasonable. The concept was innovative and proved to be a monetary life saver when the economic disaster at the end of the Bush administration took its toll on the finances of a vulnerable nation. This action proved to be an example to other beleaguered government agencies in their quest to reduce expenses while not giving up protection.
The taxpayers of New York should be grateful to municipality insurance New York for the efforts on their behalf that have resulted in such savings. Such actions bode well for the future of New York communities.