Washington State Transit Insurance Pool June 30, 2012 Actuarial Review Strictly Private and Confidential Board Presentation September 27, 2012

PwC2 Summary of Losses and Reserves Automobile Liability – June 30, 2012

PwC3 Summary of Losses and Reserves General Liability – June 30, 2012

PwC4 Summary of Losses and Reserves Auto Physical Damage – June 30, 2012

PwC5 Summary of Losses and Reserves Property – June 30, 2012

PwC6 Summary of Losses and Reserves All Coverages – June 30, 2012

Incorporation of Other Program Costs Overall cost of the program is estimated to be $11.1 million Gross of deductible How much to collect above or below (contribution to equity) the cost estimate depends on: Rate stability Funding adequacy Other

PwC8 Expected Result of Only Collecting Costs (assuming goal of supporting current SIRs)

PwC9 Rating Formula Exposures Mileage (by mode) Number of Employees Property Insured Values Vehicle Insured Values Base Rates Deductible Factors Experience Modification Factors Other Rating Cost Components UIM Additional Excess UST Driver Monitoring Others XX +X= Total Indicated Assessment

Experience Rating Status Revised System Implemented for 2012 Allows more self-rating over time More divergence in modification factors observed 10

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