Vendor or Partner?

April 2009

Staff members of the Risk Management Trust recently had the opportunity to offer insight into the inner workings of a governmental pool to several of Tennessee’s Superintendent Study Councils. The topic, RISK POOLING AS A FINANCIAL PRODUCT, had the objective of pointing out the differences between insurance risk pooling versus purchasing from a commercial, for profit company. Much the same as your school district or county government, the Risk Management Trust is a governmental entity, not a private vendor marketing its products. Owned by and operated for the benefit of its members, the Trust uses the collective buying power of the membership, now some 150 strong, to secure the most affordable products and services for its members. In addition, the investment income gained from reserves is used to offset the cost of coverage for members.

Inevitably, every year, there are three or four of your fellow members who solicit bids, believing that TNRMT is just another vendor selling insurance. Quite to the contrary, TNRMT is a governmental entity and serves no purpose other than to provide you, its members, with the best price, coverage and service available. When you think of your TNRMT, think of it as another governmental organization which is available to help you; not as a vendor who is here just to make a profit by selling something to you.

We hope to see you at your Superintendent Study Council, but if you are unable to attend and would like a more detailed explanation of the benefits of risk pooling versus commercial insurance, please contact John Wilburn at (888) 743-4336 or John Evans at (866) 826-4274.