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What is OMEX?
OMEX is Ontario's only licensed municipal reciprocal insurer. Reciprocals are not-for-profit organizations that are owned and operated by their members. OMEX members pool their coverage, sharing in the risks and rewards of working together to manage insurance costs. How does Reciprocal Insurance Work?
An insurance reciprocal operates similarly to other insurance companies. They issue policies, charge premiums, transfer risk to reinsurers and pay claims. They are, however, a member-governed alternative to the conventional insurance market. Reciprocal insurance fees or premiums reflect the true cost of claims. Members agree to share these costs according to the formula set out in the Reciprocal Agreement. What is the Reciprocal Advantage?
Most OMEX members point to greater control and cost stability as the greatest advantages of reciprocal insurance. Members determine how OMEX is run and how premiums are spent focusing on products and services that meet their needs and avoiding extraneous ones. Members work side-by-side with OMEX professionals to provide appropriate coverage and reduce their costs. Members can be actively involved in the handling of their claims, or rely on the OMEX staff to manage this for them. Either way, they can share in the valuable loss control information gleaned from their claims experience. Another advantage is that claims are more likely to be handled without hassle as coverage, not profit, is OMEX's priority. "The City of Brampton values OMEX's cooperative approach to municipal insurance. Overall, it offers excellent coverage, consultative input into how claims are managed, and strong support in risk management practices." Roman Parzei, Senior Manager, Investments, Insurance & Risk Management, City of Brampton Why is "municipally-focused" insurance important?
Municipally-focused insurance means that policies are specifically worded to reflect municipal risks and that services are tailored to municipal needs and interests. OMEX programs and services are designed expressly to help municipalities better manage their risks and mitigate their costs. As a result, OMEX is more likely to offer the coverage municipalities need--even for assets that are difficult to insure elsewhere. OMEX staff understand the environment under which municipalities must operate in terms of legislation and expectations. We are constantly looking for ways to provide risk management support or insurance coverage either through the reciprocal or through insurance products that we have arranged for OMEX members. "The County of Dufferin values the full-service approach to all aspects of insurance services that OMEX provides. Its client-centred focus means they are continually looking at ways to improve service and meet client needs. It's not surprising when you consider that OMEX is about municipalities working together to manage thier own risk in a cost effective manner." Linda Dean, Chief Administrative Officer, County of Dufferin What does "the true cost of claims" mean?
As a not-for-profit organization with low overhead, OMEX premiums reflect the true costs of claims. Our annual premiums are based on the money needed to fund claims, purchase reinsurance and pay operating costs. Friction costs such as commissions and broker fees are dramatically reduced or eliminated. Premiums are tied almost exclusively to the exposures shared by reciprocal members and are largely unaffected by major claims in other jurisdictions or industries. As a result, OMEX premiums tend to be much more stable over time than they are in the commercial marketplace. Are Reciprocals a new idea? No. Reciprocals are a proven and popular concept among organizations that share a common interest. Most have been in existence since the early 1980s. Today, reciprocals insure the majority of hydro-electric commissions and school boards in Ontario, as well as many hospitals and universities across Canada. Municipal reciprocals exist in other parts of Canada including British Columbia and Nunavut. "OMEX is so much more than an insurance provider. It's a complete resource for municipalities who want to work towards proactive risk management and decreased costs over the long term." Valerie Critchley, Executive Director, Council and Customer Services, City Clerk, City of Windsor.
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