| | | | | | | | City of Independence | AGENDA ITEM COVER SHEET |
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| | | | | | | | Agenda Title:
Approval of 2022-2023 Property Insurance Renewal for City Utility Property |
| | | | | | | | Recommendations:
Staff recommends approval with an estimated annual premium of $690,330 for utility property which reflects an overall 10% increase. Lockton Companies, Inc., who has been the City’s insurance broker since 2005, submitted the renewal proposal. The proposal was reviewed and recommended for approval by Charlesworth Consulting, LLC, the City’s risk management consultants. This reflects the added cost of an annual engineering services and an updated property valuation of 7% over prior year.
Staff recommends approval of utilizing AEGIS as the lead insurance form, the allocation of risk is: 68.75% AEGIS; 16.25% London and 15% Swiss Re. |
| | | | | | | | Background:
Lockton approached the renewal carriers earlier than normal this year to secure a strong renewal void of having to market the program in consecutive years which tends to weaken the City’s ability to secure stable insurance programs. The property insurance market continues to pose challenges, with coverage limitations, increased deductibles and higher premiums. This is true for the City’s renewal last year, but much more palatable for this renewal, yet it was still difficult to secure quotes early due to insurer capacity.
For the Utility property, the City has historically had a quota share program, where several carriers provide coverage, and each take a portion of the risk. Each carrier has slightly different terms, limits, and deductibles. Again, this year, the quotas, carriers and terms remained as per the current program. The Blue Valley Power Plant continues to be covered at actual cash value, not replacement cost, because the City will not rebuild the plant in the event of a total loss.
Risk Management’s Utility Property goals this going forward is to work with the insurance loss control representative to get back to on-site visits. |
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Fiscal Impact:
The fiscal impact to the three utilities is $690,330. The Insurance premiums are paid from the Risk Management Fund 093, account number 4293-5207. The premium is then allocated to each department based on their actuarial impact to the premium.
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| | | | | | | | Department: Finance and Administration | Contact Person: Bryan Kidney |
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REVIEWERS: | Department | Action | Finance Department | Approved | Finance Department | Approved | City Managers Office | Approved | City Clerk Department | Approved |
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Council Action: | Council Action: |
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