Date: May 16, 2006
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

Insurance Commissioner Announces Lower
Rates for Local Units of Government

Madison, WI—Wisconsin Insurance Commissioner Jorge Gomez today announced lower insurance premiums for the Local Government Property Insurance Fund (LGPIF). The LGPIF is a voluntary property insurance program for local units of government administered by the Office of the Commissioner of Insurance. "In this time of tight government budgets, we are pleased to be able to offer lower insurance premiums to our policyholders," said Commissioner Gomez. "Many Wisconsin taxpayers will benefit from these lower rates."

The announced rate decrease will average 14.5% for the building and contents line of coverage, effective for policies renewed on or after July 1, 2006. Combined with last year's rate reductions of 16%, LGPIF premiums have declined approximately 30% over the past two years.

As of December 31, 2005, the LGPIF insured 1,154 local units of government including counties, cities, towns, villages, and school districts in Wisconsin with total insured values of more than $38 billion. The LGPIF operates with the support of a policyholder advisory committee and the rate decrease was recommended after their review of the Fund's overall financial position. Commissioner Gomez acknowledged the Committee's work and said, "The work of the Advisory Committee in recommending policy language changes and loss control programs has been invaluable and contributes to our ability to keep premiums low."

The LGPIF has offered insurance to local units of government since 1913. Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.