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l� �7 <br /> Indian River County, Florida <br /> Memorandum <br /> NOW- <br /> TO: Joseph A. Baird, County Admin tr <br /> THRU: Jason Brown, Director, OMB <br /> FROM: Beth Martin, Risk Managers, <br /> J7' <br /> DATE: April 8, 2013 <br /> SUBJECT: Request for Agenda; Property/Casualty Insurance 2013-14 <br /> Please consider the following for inclusion on the April 16, 2013 Board of County <br /> Commissioners' agenda. <br /> Background <br /> On April 4, 2011, the Board of County Commissioners approved the current excess <br /> property/casualty insurance program following a Request for Qualifications for insurance <br /> services and review of the submittals by Siver Insurance Consultants. Arthur J. Gallagher Risk <br /> Management Services, Inc. (AJG) implemented the current program and with staff, recommends <br /> the renewal program as detailed below and found in detail in the full proposal available for <br /> review in the Commission office. <br /> Analysis <br /> Renewal discussions began in December. Our goals were two-fold: maintain coverage <br /> necessary to protect the County's assets and control costs for doing so. Two forces combined to <br /> make the renewal difficult. First, Meadowbrook (Star), underwriter of the package or primary <br /> layer of coverage, announced that it was withdrawing completely from the market. Second, <br /> workers' compensation insurers significantly reined in their willingness to underwrite public <br /> sector clients because of presumption claims, arising from what is commonly referred to as the <br /> Heart/Lung Bill, for police and firefighters. <br /> Savings of approximately four (4) percent, or $52,470, were achieved for the property coverage. <br /> Other lines fluctuated moderately with some increases and some decreases. The overall effect is <br /> that the total premiums for all other lines (excluding worker's compensation) remained nearly <br /> static. Workers' compensation presented the most challenge. Many carriers were unwilling to <br /> �-- write coverage because of presumption claims' high costs. One carrier would quote only with a <br /> $1 million self-insured retention. <br /> 37 <br />