Title
Resolution to Approve the Board of Insurance Administration's Recommendations for 2023 Insurance Renewals effective March 1st, 2023
Memorandum
This resolution is submitted for City Council's approval of the Board of Insurance Administration's recommendations for the City's 2023 Insurance Renewals effective March 1st, 2023.
The City's insurance broker, Hylant Group, advised the Insurance Board that the insurance market continues to change rapidly with increased premiums, increased retentions (deductibles), and reduced limits for most lines of coverage. Premium increases for municipalities have been significantly impacted. Rates for general liability, including police liability, have exceeded 100% of expiring policies in some instances.
Hylant has provided the Insurance Board with a comprehensive review of the quotes, changes in coverages and rates, and provided recommendations which include 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.
For all lines of coverage, our priority is always to maintain existing coverage over our expiring policies at the best possible premium. Hylant continues to negotiate with carriers for additional coverage and lower premiums where possible. At the January 2023 meeting of the Board of Insurance Administration, Hylant indicated that total calculated premiums could be as high as $1,873,895. It is anticipated that continued negotiation leading up to City Council approval could lower this premium.
Based on its consideration of the renewal information provided, the Board of Insurance Administration recommends that Council approve the 2023 Property and Casualty Insurance Renewals for the City as recommended by Hylant in the amount of $1,873,895 in order to secure coverage equal to expiring policies.
Staff
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