HomeMy WebLinkAboutSS3 - Insurance RenewalsCITY OF NEWPORT BEACH
STAFF MEMO
Study Session . #3
February 10, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Human Resources, Lauren Farley, Risk Manager, (949) 644 -3302
IfarlevBcity. newoort- beach.ca.us
SUBJECT: Insurance Renewals
The purpose of this study session item is to update Council on the insurance renewals
that will be on the February 24, 2009 Council agenda.
The attached renewal overview indicates that the City's 2009 insurance renewals are
expected to be priced anywhere between a zero (0 %) to a 5 % decrease in overall
premium payment, except excess workers compensation. Although, the excess
workers compensation premium rate may remain unchanged or be a slight decrease,
the overall reportable payroll is increasing impacting the total premium paid. Again, the
City's renewal date positions us to make the most of market timing, coverage forms and
capacity & limits.
Risk Management staff and Mark Zahoryin, our insurance broker through our last
sixteen renewals are available to answer any questions about the renewal process,
insurance carrier indications and market conditions.
CITY OF NEWPORT BEACH
INSURANCE RENEWAL OVERVIEW
I. INSURANCE MARKET/ECONOMIC CLIMATE
Il. MARKETING PROCESS
A. November - Start to update Underwriting Information
B. December - Send Submissions to Markets
C. January - Review of Market Status with City Staff
D. February -Finalize Carrier Negotiations
E. Changes Expected in 2009
III. ANTICIPATED 2009 RENEWAL
A. Property
1. Master Property Policy
• Premium indications are 0% to 5% decrease
• No significant change in coverage terms
2. DIC — Earthquake & Flood
• Premium indications are 0% to 2% decrease
• No significant change in coverage terms
• Net effect flat rates over last year
B. Excess Workers Compensation
• Rate indications are 0% to slight decrease
• Premium indications are expected not to exceed 6%
• Expecting additional competitive quotes
C. Excess Public Liability
• Premium indications are ranging from 0% to 5%
decrease
• Expecting two additional quotes
D. All Other Lines of Coverage
• Watercraft
• Crime
• Fiduciary
IV. SUMMARY
V. QUESTIONS