Insurance Program Receives Favorable Underwriting Audit

The trustees of the Kentucky School Boards Insurance Trust got good news at their quarterly meeting over the weekend.

Selective, the reinsurance company for KSBA’s liability and workers’ compensation programs, recently conducted an underwriting audit that yielded very positive results.  The evaluation criteria included Application Information, Loss Analysis, Financial Information, Loss Control Use, File Documentation, Account Underwriting and Pricing to Exposure. 

The report states that management is doing a good job in getting underwriting files into a manageable and functional order and overall the operation was acceptable with no major recommendations. 

Reinsurance represents a significant operational cost and is a critical component of the insurance programs because it allows competitive policy limits and pricing and protects against catastrophic claims or unusual claims frequency. 

KSBA Executive Director Bill Scott said the positive audit of the insurance program's underwriting efforts is more than just a sign-off on paperwork.

"Our staff have put a tremendous amount of time and labor over the past year in improving all aspects of our insurance services," Scott said.  "This audit is just another indication that those extra hours spent to strengthen our record keeping, loss prevention recommendations and financial reporting are making our programs stronger."

A.M. Best has rated Selective A+ (Superior) for 45 consecutive years and KSBA is pleased to have such a strong carrier backing its programs.