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Insurance and Risk Management Advisory Board Meeting of March 5, 2021.
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Board member Mr. Juan C. Diaz-Padron opened the meeting. Meeting was called to order at 9:03am. Quorum in person was not reached.
OLD BUSINESS:
Update Insurance Renewal Process - Ms. Maria Perez- Arthur J. Gallagher
In depth discussions in a period of over three hours were conducted.
A. Presentation by Arthur J. Gallagher (“AJG”) of the renewal of the current insurance program
-Maria Perez presented AJG’s Executive Summary (Exhibit 1) and went over the City’s current insurance program and the status of the insurance renewal.
-Maria also presented the difference in premiums between FMIT’s proposal and the proposal if the City continued with its current program structure, which is approximately $800,000.
The renewal numbers that were presented were the current worst case scenario in terms of premiums, of importance to note :
The Package Program renewal with the same insurance carrier BRIT, increased by15% to $829,500 (for a total of $1,007,006 when you include excess workers‘ compensation) due to claim history and a hardening market. A quote also was received from Safety for $891,884 (include excess workers’ compensation) and PESLIC for$910,100 (includes excess workers’ compensation). FMIT quoted $822,112 but advised that this was contingent on the City also obtaining property coverage with them.
The Excess Workers Compensation renewal saw a rate increase of 7% with the incumbent carrier.
The Property Insurance renewal was a premium rate increase of 4.84% despite a hardening market where some clients saw an increase of over 20%. The City informed the Board that it was in the process of having most of its properties re-indexed and those properties that were not being re-indexed were being physically appraised. The property value of the majority of the City’s properties that were reindexed increased by13%. JC Padron asked whether th...
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