04/12/2016 (2) - Laserfiche WebLink

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TO: i THRU: FROM: DATE: t SUBJECT: Indian River County, Florida Memorandum Joseph A. Baird, County Admini Jason Brown, Director, OMB Beth Martin, Risk Manager,�n April 4, 2016'' Request for Agenda; Property/Casualty Insurance 2016-17 1� e I Please consider the following for inclusion on the April 12, 2016 Board of County Commissioners' agenda. Background In preparation for the May 1, 2016 renewal, staff worked with Siver Consultants and Arthur J. Gallagher Risk Management Services, Inc. (AJG) to secure the most comprehensive, cost- efficient property and casualty insurance program for the County. On this first renewal of the five-year service agreement with AJG, we are pleased to present a program which once again reduces ,the County's coverage costs. Analysis Attached, please find the detailed Executive Summary prepared by Rozell Schnur, Client Service Executive, AJG. Several charts within the Executive Summary detail the various lines of coverage. Highlights of the renewal are: Property' : Total insured property values increased 2.8% for the 2016 renewal (2% was a cost of inflation increase) to $352,048,567.00 but the renewal premium rate per $100.00 in total value decreased 9.9% to $0.2608. This resulted in a 7.6% premium reduction, with $35,000,000.00 named storm limits, to $918,446.00, or a savings of $75,764.00 from the current policy. This reduction follows similar savings of 4% in 2013-14, 16% in 2014-15, and 17.67% in 2015-16. Additionally, the County has been offered a two-year rate guarantee, a reduced All Other Perils deductible, and a manuscript policy form among other enhancements. Casualty Package: In addition to a two-year rate guarantee, BRIT offered a 2.7% premium reduction for this package which includes excess general liability, auto liability, public officials liability, miscellaneous liability, employee benefits liability, law enforcement activities and EMS operations. Annual cost is $146,000. 174