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Value of Services

What is the Market Value of IRMA Services? 

Over the past few years, several members have inquired about the actual dollar value of IRMA services.  In the past we have received lump sum estimates of the value of the Pool’s services in previous market comparison reports, but an in depth study had not been previously conducted.
To address this need, IRMA retained the services of ICRMS, an outside risk management consulting firm specializing in pooling and public sector risk management, to conduct a detailed study to determine the fair market value of IRMA’s risk management and training services.  The Executive Summary of this report is provided below.  The full detailed report will be distributed to all IRMA members.

Executive Summary of Quantitative Risk Management Services Evaluation

Independent Consulting and Risk Management Services, LLC (ICRMS) was engaged by the Intergovernmental Risk Management Agency (IRMA) to conduct a Quantitative Services Evaluation regarding the Risk Management, Loss Control and Membership Education and Training services provided to its membership.  The evaluation examined and commented on present IRMA operational activities associated with costs related to the delivery of risk management membership services including internet and onsite training and other risk management resources. Comparative cost ranges associated with selected carriers and safety training groups for their risk management and loss control services were also taken into consideration.

Review Process

ICRMS conducted the Quantitative Services Evaluation via the following techniques and activities:
  • Interview and discussions with the IRMA Director of Risk Management Services and discussions with the Director of Training and Education.
  • Off-site review of member only IRMA website tools, resources and services.
  • Review of IRMA training services and catalog
  • Review of IRMA Management Assessment Program (IMAP) Accreditation.
  • Review of IRMA power point training topics for members.
  • Review of three member’s IMAP reports, Member Service Plans with three year’s loss control recommendations and with Risk Management Hazard Recognition process and review.
  • Review of IRMA budget and State of the Membership Report.
  • Review of selected insurance companies safety/training web sites.
  • Review of the National Safety Council and Chicago Chapter training programs and costs.
  • Review of the Northeastern Illinois Public Safety Training Academy (NIPSTA) training programs and costs

Overall Report Findings

1.   On a comparative basis with other public entity pools located in Massachusetts, Michigan, Ohio, New Hampshire, New Jersey, Texas and Wisconsin that ICRMS has worked with regarding risk management, safety and loss control services, we find that IRMA’s overall risk management/safety and training services offered per the expenditures incurred, are substantially beyond what other public entity pools offer to their members. We have only seen one public entity pool that undertakes a membership service plan similar to that utilized in the IRMA IMAP process. ICRMS has not seen any pools or carriers offer a member assessment and evaluation program to the depth and scope of the IRMA Management Assessment Program.
2.   On a comparative basis with national and regional safety/training service organizations, IRMA’s training costs per member are substantially below the national safety training councils with actual costs varying between 20% to +300% below national/regional training cost averages.
3.    On an overall analysis based on the documents and information reviewed within this report, we estimated that the IRMA membership benefits from a quantitative risk management/training cost benefit estimated to be two to two and one half times the present IRMA cost expenditures compared to what may be available within the standard marketplace from insurance carriers or national/regional safety training services. We feel that this equates to actual budgeted costs of $721,778 proving valued risk management/safety/training and educational services with a market value in the range of $1,440,000 to $1,800,000 to the membership.