MCIT consultant presents risk management report to Wadena County Board – Wadena Pioneer Journal

WADENA — Richard Miehe, a risk management consultant with the Minnesota Counties Intergovernmental Trust (MCIT), presented a detailed overview of the county’s insurance coverage and risk profile during the Wadena County Board of Commissioners meeting on July 15.

MCIT, a joint powers entity that serves 81 of Minnesota’s 87 counties, functions as an insurance provider rather than a traditional insurance company, Miehe told commissioners.

“We take a contribution, not a premium,” Miehe said. “We use that money to pay claims, and we invest it and ideally we return a dividend back to the membership when it’s financially prudent to do so.”

Miehe said MCIT has raised its retention rates in an effort to keep membership contributions low. He also noted a 39% increase — totaling $2.6 billion — in the total insured value of member properties over the last five years, attributing the jump to rising labor and property costs.

On the subject of cyber and data claims, Miehe reported a notable trend: while the number of claims has risen, their severity has dropped, with no ransomware incidents reported in 2024. Commissioner Ron Noon asked whether the county could take steps to reduce insurance costs by improving cyber security.

Additional questions from commissioners revolved around whether or not the county can help to mitigate the rising costs of insurance. Miehe said that unlike unpredictable natural disasters that can damage buildings or equipment, many cyber claims are preventable and encouraged commissioners to work with their IT department to further explore training opportunities for staff.

In other business, newly appointed Chief Deputy Administrator Jennifer Westrum updated the board on community support services offered through Wadena County Human Services and Northern Pines Health Center.

Westrum explained that a full-time employee who had managed the program recently transitioned to another county position and was not replaced. With referrals for community support services tripling while adult mental health case numbers declined, Westrum recommended a contract-based approach.

“What we’ve seen is with our adult mental health case modes dwindling, the number of referrals we’ve had for this program have also tripled. So it does not make sense to employ someone full-time to do this,” Westrum said.

The board unanimously approved a $30,000 grant-funded contract with Northern Pines to continue offering community support services through Dec. 31.

Nicole Stracek is an award-winning journalist known for her insightful and impactful storytelling across the region. As the community editor for the Wadena Pioneer Journal, she covers everything from local government to breaking news to human-interest features that highlight the heartbeat of Wadena. Nicole can be reached at 218-631-2561 or [email protected].