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HomeMy WebLinkAboutSS4 - Insurance Renewal"RECEIVED AFT R AGENDA PRINTED:" - Ob CITY OF NEWPORT BEACH A:�-6SL� COUNCIL AGENDA ADJOURNED REGULAR MEETING STUDY SESSION 4:OOPM FEBRUARY 28, 2006 INSURANCE RENEWAL OVERVIEW I. BROWN AND BROWN/ OVERVIEW A. Seventh Largest Independent Brokerage in the U.S. B. Eighth Largest Independent Brokerage in the World. C. 150 locations in 33 States II. MARKETING PROCESS A. November - Start to Accumulate Updated Statistical Underwriting Information B. December - Start Submission Process to Markets C. January - Review Market Status With City's Staff D. Week of February 6th - Joint Meetings with City's Staff/ Brown & Brown and Selected Carriers III. MARKET CONDITIONS AND ANTICAPATED 2006 RENEWAL RATES A. Excess General Liability: Stable with renewals at slight variations from expiring. B. Excess Workers Compensation: Expected flat to 10% decrease in rate. C. Property: 1. Master Property Policy excluding piers and without coverage for earthquake and flood: Expected flat premium rates. 2. DIC- Earthquake, Flood and including all coverage's on the piers: On tougher renewals we saw increases on 15 -25% in premium rates. INSURANCE City of Newport Beach February 28, 2006 Agenda IV. MARKET CONDITIONS /EXPECTATIONS REFLECT MARKET SELECTION A. Excess General Liability- Incumbent Markets were clearly the most competitive priced with the most comprehensive terms. B. Excess Workers Compensation: To take advantage of market leverage six markets were selected. C. Property: Due to what was expected on the DIC- earthquake and flood 15 markets were selected. V. MARKETING RESULTS A. Excess General Liability: Flat premium after slight increase in population exposure base. B. Excess Workers Compensation: Slight decrease in premium after 8% increase in payroll. Effectively a 9% reduction in rate. C. Property: 12% premium increase VI. SUMMARY VII. QUESTIONS i IN• RANCE