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 weakens 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 year was working with the insurance loss control representative conducting on-site visits.  Several were conducted just these past few months with what we consider positive suggestions.