Hanover Twp. retains Brosky as insurance company
Hanover Township set up its budget for 2018 with few changes. Council is set to have a meeting by the end of December to approve all remaining bills and approve the budget.
One concern voiced during the summer was a request by two councilmen, Curtis Wegfahrt and Robert Heimbecker, to send the insurance contract to bid. The township has a long-standing business relationship with Brosky Insurance. The company has a local office in the township.
In an earlier insurance discussion, a rival company offered to provide a lower rate, although no specific pricing was given. Weg- fahrt and Heimbecker based their request on the substantial savings the township received when it took the trash contract to bid.
Both insurance companies presented their cases before council at separate meetings. After hearing the Brosky presentation, council decided not to bid the insurance package.
Todd Brosky heads the insurance company that bears his name.
“We have been handling the township’s insurance needs for 25 years. We offer a unique product,” he said in a telephone conversation.
Brosky is the regional broker for MRM Trust, a municipal trust. Fees are paid to the trust and the funds are used to pay claims. There are 400 municipalities in the trust.
“It is unique in that it is not like a mutual insurance fund. The municipality does not have a claim on the funds it has on deposit if it decides to leave,” he said.
The MRM Trust has a respected list of reinsurers to protect its members from sudden catastrophes.
If claims get out of control, members of the trust can force a member to leave. Generally, members of the trust receive a rebate based on claims activity. Last year, the township’s refund amounted to $27,000. There is a capital reserve valued around $90,000 that Hanover Township has a claim on.
“The reserve is built up because the township has been in the trust for a long time and the claims experience is low,” Brosky said.
The township would lose its claim on the $90,000 should it elect to leave the trust.
“We take our position with the township as a very important responsibility. We actively seek alternatives, and we review the township’s claims records every three years to be sure that we are providing the best products,” Brosky said.
The other advantage Brosky has is a low commission rate. The sales effort for the trust is low because members are asked to join the trust.
“Sales campaigns are nonexistent. The trust doesn’t want to be a large company; they want to service the clients they have and recruit like-minded municipalities,” Brosky said.
The township staff strongly supports keeping Brosky, and that level of support is what convinced council to keep the insurance.
“We have established a long-term relationship with Brosky. There are not wildly fluctuating costs with our insurance. The working environment that we have with them is great,” township Manager Sandra Pudliner said.
According to Pudliner, Brosky’s rates are comparable to and often lower than other insurance carriers.
“One of our concerns is that you get a low rate presented to get you into a new company, and then rates climb during the following years. If we leave, it would take a long time for us to regain our position in the trust. We must consider those consequences,” she said.
“We want to be sure that the people in the township understand that we have their best interests in mind,” Brosky said. “We want to continue as the township’s insurance broker.”