The Intergovernmental Risk Management Act (IRMA) was passed by the Nebraska Legislature during the insurance market crisis of the early eighties. At that time, municipalities were finding it difficult to purchase affordable insurance coverage. The Act made it possible for public agencies to join together to form a Group Self-insured Pool to respond to their insurance coverage needs and to provide its members with risk management services.
Based on a study initiated by the League of Nebraska Municipalities (LNM) it was determined that there were limited insurance carriers and products available to municipalities in the State of Nebraska, which limited the cities' ability to control insurance costs, coverage and services. Based on the results of the study and the interest of members, LNM resolved to create the League Association of Risk Management (LARM).
LARM began operations in late 1989 by offering an endorsed insurance program for municipalities that included risk management services. The impact of additional competition was immediate and dramatic. Municipalities who receive a bid from LARM's endorsed carrier saw as much as a 40% reduction in cost from the traditional insurers in the State.
LARM received its Pooling Certificate from the State of Nebraska in 1995 and began operating the Property and Liability Group Self-insurance Pool. The Workers' Compensation division was introduced in 1997. Over the years the competition created by LARM has meant savings of hundreds of thousands of dollars for municipalities throughout the State for both those who have joined LARM and those who have not.