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Analysis
<br />Attached, please find the detailed Executive Summary prepared by Erica Connick, Account
<br />Executive, AJG. Several charts within the Executive Summary detail the various lines of
<br />coverage. Highlights of the renewal are:
<br />Property: Total insured property values increased 4.42% for the 2018 renewal. The renewal
<br />was fully marketed to 30 markets, yet with the industry facing insured losses from Harvey, Irma
<br />and Maria expected to exceed $100 billion, wiping out 15% of the industry's surplus, and the
<br />County's claims for Matthew and Irma expected to exceed $9 million, premium increases were
<br />expected. The recommended renewal premium represents a 24.03% increase at $1,221,367.00.
<br />Options Reviewed to Reduce Premiums
<br />The broker evaluated numerous options for property premium savings based upon the County's
<br />exposures, historical losses and maximum probable loss. Those options are found in the
<br />Executive Summary, Page 4, and the four (4) that most closely approximate the County's
<br />previous coverage and needs are in the table below:
<br />Named
<br />Storm
<br />Limit
<br />AOP Limit
<br />Savings
<br />Rate
<br />Change
<br />Total
<br />Premium
<br />Increase
<br />$35,000,000
<br />$200,000,000
<br />($25,000)
<br />16.30%
<br />$1,196,367
<br />$211,629
<br />$35,000,000
<br />$100,000,000
<br />($74,244)
<br />11.56%
<br />$1,147,123
<br />$162,385
<br />$30,000,000
<br />$200,000,000
<br />($60,297)
<br />12.90%
<br />$1,161,070
<br />$176,332
<br />$30,000,000
<br />$100,000,000
<br />($101,297)
<br />8.90%
<br />$1,120,070
<br />$135,332
<br />At a 11.56% increase, or $1,147,123.00 premium, this would lower the Named Storm Limit to
<br />$35,000,000.00, still within the Probable Maximum Loss prediction but lowers the coverage for
<br />All Other Perils (AOP), such as fire or tornado, from $200,000,00.00 to $100,000,000.00. With
<br />our broker, we reviewed clusters of County -owned properties, such as the County Administration
<br />complex, Sheriff's complex, Courthouse/Garage/Main Library, and found them to fall within
<br />these revised limits. Staff recommends that for the $74,244.00 premium difference, we remain at
<br />the higher limits.
<br />After review, staff concurs with the broker's recommendation for renewal at the current Named
<br />Storm and AOP limits of $40,000,000/$200,000,000 at the annual premium of $1,121,367.00.
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