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File #: 21-0154    Version: 1 Name: 2/16/21 Resolution to Approve 2021 City of Ann Arbor Property and Casualty Insurance Renewals
Type: Resolution Status: Passed
File created: 2/16/2021 In control: City Council
On agenda: 2/16/2021 Final action: 2/16/2021
Enactment date: 2/16/2021 Enactment #: R-21-064
Title: Resolution to Approve the Board of Insurance Administration's January 28, 2021 Recommendations for 2021 Property and Casualty Insurance Renewals
Attachments: 1. City of Ann Arbor - March 2021 Insurance Renewal Summary 1-28-2021.pdf
Title
Resolution to Approve the Board of Insurance Administration's January 28, 2021 Recommendations for 2021 Property and Casualty Insurance Renewals
Memorandum
This resolution is submitted for City Council's approval of the Board of Insurance Administration's January 28, 2021 recommendations for the City's 2021 Property and Casualty Insurance Renewals.

The City's insurance broker, Hylant Group, advised the Board that the insurance market has rapidly changed during 2019 and 2020 with increased premiums, increased retentions (deductibles), and reduced limits for most lines of coverage. Rate increases for municipalities have been significantly impacted, with property and liability insurance rate increases that have exceeded 35%.

At the January 28th Insurance Board meeting, Hylant provided the Board with a comprehensive review of the quotes, changes in coverages and rates, and made recommendations which included coverages for property, casualty, public entity liability, excess liability, crime, fiduciary liability, aviation/airport liability, liquor liability, general liability/excess liability (650 S. Forest parking garage), cyber liability, and travel accident insurance. The result of this extensive marketing and negotiating effort is the recommended renewal of all lines of coverage with incumbent carriers, except for moving cyber liability coverage from AIG to Travelers. The resulting increase in premiums is limited to 3%.

Hylant's recommendations include some changes in coverage which aided in keeping the total premium increase for the City lower. For property insurance, the loss limit per loss (single event) was lowered from $500,000,000 to $400,000,000. The likelihood of a single event and claim exceeding $400,000,000, considering the current geographic spread of City owned properties, is extremely low. For liability coverage, our incumbent carrier did not provide a quote for insurance with the City's current $500,000 self-insured retention (deductibl...

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