Title
Insurance and Risk Management Advisory Board Meeting of February 26, 2020.
Body
Board member Mr. Juan C. Diaz-Padron opened the meeting. Meeting was called to order at 8:04am. Quorum was reached.
Update Reference Mr. Tony Abella - Arthur J. Gallagher - Ms. Maria Perez
Ms. Perez updated Board regarding Mr. Abella’s current health status. Ms. Perez expressed how Mr. Abella, even though he was unable to be
present at today’s meeting, had been a great contributor to the information being presented.
A motion was made to assure Mr. Abella is advised that the Board wishes him the best health and wishes for a speedy recovery.
Motion by: Mr. Gary Reshefsky / 2nd: Mr. Matthew Weaver / All approved unanimously
NEW BUSINESS:
Insurance Renewal Process - Arthur J. Gallagher - Insurance Renewal Executive Summary
(Exhibit 1)
Ms. Perez addressed Board regarding progress of upcoming insurance renewal and made presentation following the Executive Summary attached as Exhibit 1.
Ms. Perez advised they have been out to the market for a couple of months now. Ms. Perez stated she had currently returned from London after meeting with fifteen different
Lloyd’s syndicates getting a pretty good idea regarding what the market is doing for property insurance and what that may look like. Ms. Perez advised there seems to be
a capacity shortage, therefore an approximate 10% rate increase is expected for clients which have not had any claims in the past three years. However, those who have
had claims are looking at much higher percentage increase, in the range of 30% and more. Ms. Perez explained many syndicates have closed shop or underwriters lost their
jobs, reason is many have been reducing their rates year after year therefore their loss ratios on books went above 100%. Ms. Perez advised it would be closer to end of March
before they would be able to receive quotes.
Board discussed status regarding Hurricane claim. Ms. Elejabarrieta advised City is curre...
Click here for full text