CIRMA provides continued stability in a year of turmoil in the financial and insurance markets.

New Haven, CT, February 4, 2009 – Almost 180 Connecticut municipal and school leaders, members of the Connecticut Interlocal Risk Management Agency (CIRMA) learned that there is some financial stability on the horizon in 2009. At its 28th annual meeting of members, CIRMA's president and CEO, Bruce A. Wollschlager, announced it will continue to hold its aggregate Workers Compensation and Liability-Auto-Property rates steady consistent with the CIRMA mission of providing open, stable markets.

"It's a remarkable achievement that springs from conservative disciplined financial management and the leadership of CIRMA's board of directors and governing committees," said Wollschlager. "CIRMA's conservative financial governance and operational discipline has enabled CIRMA to provide its members guaranteed availability of coverage, rate stability, and expanded risk control services. Wollschlager emphasized that CIRMA will continue to provide the broad policy enhancements and coverages it has introduced in recent years while it keeps its rates stable and low.

"Commercial insurance markets follow the general business cycle," Wollschlager noted, "CIRMA, however, was created by its member municipalities twenty-eight years ago to provide a secure, readily available source of risk financing that didn't have the dramatic rate spikes typical of the commercial market. Even in the current market turmoil, CIRMA will continue to provide stable rates as well as provide a unique LAP 3-Year Rate Guarantee program, Police Dog Replacement coverage, Winter Road Treatment liability coverage, and extensive risk management services," he stated.

Since CIRMA provides Workers' Compensation and Liability-Auto-Property coverage to 84% of the municipal marketplace in Connecticut, the announcement that their rates will remain stable is good news for many of the state's taxpayers.

Thomas R. Sullivan, the state's Insurance Commissioner, addressed the membership about the state of the insurance industry and the role of state regulation in the market. He described how the federal regulatory framework failed to correct the excesses of AIG's Financial Products' unit and its sale of credit default swaps. That regulatory failure has led to the forced sell-off of AIG's profitable insurance subsidiaries. Sullivan noted that those insurance units remained profitable because of the successful regulatory oversight provided by the states in which they operated.

Recent changes in the legislative environment will affect local public building projects and renovations. Douglas M. Schanne, Assistant Director, Office of Education and Data Management for the state of Connecticut, spoke about the recently enacted legislation, PA Act 07-242, which requires certain public building renovation or building projects to meet LEED requirements establishing "green" building standards. Because the legislative change will affect CIRMA membership and their insurance coverage, Wollschlager announced CIRMA's plans to "close the coverage gap" for its members with higher sublimits in its property coverage for rebuilding and an "Upgrade to Green" endorsement.

About the Connecticut Interlocal Risk Management Agency

The Connecticut Interlocal Risk Management Agency (CIRMA) was established as a service program of CCM in 1980. Today, CIRMA is Connecticut's leading provider of municipal risk financing and risk management services. CIRMA's financial strength enables it to provide assured rate stability, Open availability, and expert risk control and claims services. A member-owned and governed agency, CIRMA provides high quality insurance for municipalities, school districts, and local public agencies. CIRMA operates two risk pools, the Workers' Compensation and the Liability-Auto-Property pool. It also provides Heart & Hypertension claims services and claims administration and risk management services to self-insured municipalities.