Title
Insurance and Risk Management Advisory Board Meeting of March 17, 2023.
Body
OPENING:
Chair Juan C. Diaz-Padron opened the meeting. Meeting was called to order at 8:11 am.
In person Quorum was reached. Board attendance was completed. Everyone introduced themselves.
MINUTES APPROVAL:
March 6, 2023, minutes were reviewed . Per Paul Susz, he agreed with the minutes subject to adding: (1) that a CAT Bond was discussed and (2) reducing property values from the statement of values was discussed.
Motion: Paul Susz 2nd Motion: Gary Reshefsky
Unanimously approved.
SECRETARY’S REPORT: None
BOARD MEMBERS REPORTS: None
NEW BUSINESS: None
OLD BUSINESS:
Insurance Renewal - Arthur J. Gallagher
Ms. Perez started the discussion with a review of the Package (Liability and Workers Compensation) proposals. The premium last year was $804,000. The renewal with the incumbent (Ambridge) will be $880,000. The increase is based on the current market and loss trends which resulted in an overall premium increase of 9%, rate increase of 6% with an increased exposure of 3%.
Ms. Perez discussed the quote from Berkely which is $500,000 but does not cover workers compensation which would result in the City self-insuring the 1st $1,000,000 on each claim. The current structure has the City self-insuring the 1st $500,000 on each claim, however, the City has not had a workers compensation claim that has exceeded $330,000 in the last 10 years. Ms. Elejabarrieta mentioned that Police and Fire Departments tend to have the larger workers compensation claims which are associated with heart and lung claims. Ms. Elejabarrieta did advise that the Finance Department feels comfortable with self-insuring the 1st $1,000,000 on a workers compensation claim but she is awaiting to hear back from the actuary. Ms. Perez advised that there is a trend among other clients to self-insure more on workers compensation claims.
Ms. Perez then discussed the Property Insurance Market indica...
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