Finance Committee Agenda and Packet 2013 01 22

Home Browse Search

CITY COUNCIL COMMUNICATION AGENDA ITEM ___ SUBJECT: CITY OF LOUISVILLE 2013 INSURANCE RENEWAL DATE:JANUARY 22, 2013 PRESENTED BY: HEATHER BALSER, CITY MANAGER’S OFFICE SUMMARY OF PREVIOUS RFP PROCESS AND INSURANCE RENEWAL: Background: In August of 2012, City staff issued a Request for Proposal (RFP) for Property, Casualty, and Workers Compensation Insurance Brokerage Services. Companies were asked to submit proposals by August 24, 2012. The following companies and proposals were submitted: Flood and Peterson – 8% annual commission on Property and Casualty for 3 years with an option to renew for additional 2 years. Workers Compensation Coverage through Pinnacol is set by the State and this rate cannot be modified. This commission is included in the premium price for coverage. Wells Fargo Insurance Services USA, Inc. – this company did not provide a commission rate at time of submittal. Following the deadline, Wells Fargo committed to a flat rate of $25,000 for one year for Property and Casualty. IMA, Inc. – did not provide a commission rate, but indicated in the proposal they could provide services at the same 2012 rate as the City’s current broker. Flood and Peterson was selected as the City’s insurance broker based on the excellent proposal submitted and lower commission which will save the City approximately $28,000 in 2013. Flood and Peterson has been providing insurance brokerage services to the City for over 20 years. 2013 Renewal: Flood and Peterson marketed the City’s renewal to Travelers (the City’s current carrier) and to other companies. Traveler’s was the only company that quoted all lines of coverage. Other companies quoted partial lines of coverage or declined. 1. On December 14, 2012 Flood and Peterson met with City staff to review Traveler’s preliminary renewal of an 11% increase in premiums from 2012. At the end of the meeting, Flood and Peterson committed they would continue to work on reducing the City’s premium, and were successful. On December 20, 2012 staff received final premiums for the 2013-14 renewal period for Property and Casualty and Workers Compensation. The 2013 Property and Casualty premium is $348,211 and Workers Compensation is $126,185 through Pinnacol. Pinnacol continues to be competitive and provide the City with an affordable premium. The two premiums combined total $474,396 which is a 4% increase CITY COUNCIL COMMUNICATION 6