LMCIT Sets Rates and Dividends for 2025

Just like homeowners and business owners, city governments need to protect their assets from sudden loss. That’s why they turn to the League of Minnesota Cities Insurance Trust (LMCIT), a self-insured member cooperative that provides coverage designed to meet the unique needs of cities.

The LMCIT Board of Trustees recently approved property/casualty and workers’ compensation rates and dividends for 2025. Every year the Board meets to set premium rates at a level adequate to respond to existing and future claims. If investment earnings, estimates, and members’ losses from previous years are better than projected, the savings are returned to members or used to benefit members in other ways.

Dividends to be distributed in December

Within the next couple weeks, LMCIT will provide more detailed information about rates and dividends, but here are a few things members can look forward to for 2025. For the first time since 2012, the work comp program will return individual dividends to members, totaling $5 million. Additionally, property/casualty members will receive individual dividends, totaling $3 million. Members will receive dividend checks in mid-to-late December.

Rates going down

The Board also voted to decrease overall average rates by 20% for the workers’ compensation program and decrease overall average rates by 6.5% for the property/casualty program. Keep in mind, changes in members’ replacement cost values, payroll exposures, and experience ratings will also impact premium costs for individual members.

Stability continues to be a priority

Part of the Board’s rate discussion centered on how recent trends and events (COVID and PTSD claims, for example) along with other factors have contributed to premium rate volatility, especially in the work comp program. One of LMCIT’s values is providing members with as much rate stability as possible. LMCIT has been exploring and implementing strategies, and will continue to do so, to mitigate potential volatility for 2026 and beyond.

Celebrating 45 years of helping Minnesota cities

LMCIT was established by Minnesota cities for Minnesota cities and exists solely to serve its members. The year 2025 will mark LMCIT’s 45th anniversary. The Trust’s fundamental purpose is to cover city risks and to mitigate hazards, not show a profit for stakeholders. For more information, visit lmc.org/insurance-trust.