On July 1, 2016, PRISM launched a captive insurance company, Excess Insurance Organization, Inc. (EIO). The formation was over a year in the making, having been the discussion at strategic planning, committee, and Board meetings over the past several years. EIO is a pure captive, meaning it is 100% owned by PRISM and will only take on the risk of its parent organization. The Captive will insure coverage program specific corridor risks; conceptually, a 100% transfer of risk at certain layers, much as the coverage program would cede this risk to a reinsurer. The transfer of risk offers short term gains to the ceding program, and long term gains to PRISM and its members as a whole.
Due to PRISM's financial strength, total assets of approximately $650M, including $150M in net position, we are able to leverage economies of scale not commonly available to joint powers authorities. The Captive will be domiciled in Utah, and the governing board is made up of current PRISM Board, Committee, and staff members along with Utah Counsel. Existing PRISM staff will provide in-house management of the captive including accounting, payment of expenses, and interface with regulators.
The EIO has been established to provide both short and long term objectives for PRISM including:
The board is made up of current PRISM Board, Committee, and staff members along with Utah Counsel, and they are:
EIO will be run much in the same manner as PRISM. Although captive insurance companies are not subject to regulations such as the Brown Act, it is important to the members of PRISM to have full knowledge of the happenings and activities of the EIO, and as such, staff will provide full disclosure to its members and the public. Members can view PRISM's website or the Captive's website at any time to find out more information related to the Captive.