ACTION REQUESTED:
Title
Communication from the City Manager and the Human Resource Director with a Request to APPROVE the City Manager to Authorize the Renewal of PROPERTY AND CONTENTS AND AUTO CATASTROPHIC COVERAGE INSURANCE with ALLIANT/MESIROW INSURANCE SERVICES INC., in the Amount of $170,844.65
Body
BACKGROUND: The City of Peoria owns property and vehicles with a combined value of over $222,286,801. The Alliant Property Insurance Program (APIP) through Alliant/Mesirow Insurance Services was determined to be the most comprehensive, cost effective coverage. The City currently has a renewal rate of 7.46 cents per one hundred dollars. In 2019 Alliant/Mesirow went to the market place and determined that no other carrier was providing municipal clients the comprehensive coverage that Alliant was for the price despite the increase in rate. See below responses from other carriers:
Market
Response
Travelers
Even with an increase they have a good deal now. I can take another look once they get renewal terms back from APIP but I don't think I'll be able to compete
Allianz
Underwriter does not want to compete with APIP pricing/terms even with an increase, asked to let him know if they non-renew. We would be around .09 to .10
Starr
Could consider this but not at the price. Would be up around .15 - way too high
Commonwealth
Would not want to do the full $300,000,000 limit - not trying to layer this will get too expensive.
Zurich Middle Market
Cannot compete with APIP
Great American
Even with a rate increase we would not be able to compete with the price/ those terms.
Diamond State
Wouldn't be able to come close to .07. would need more like .11-.14
Swiss Re
Don't think they can match terms but may be able to compete with .10? Will know more soon, I think APIP will still be the better option
FINANCIAL IMPACT: Estimated annual cost of $165,844.65 which represents an 17% rate increase and a 4% increase on values from the expiring premium of $136,125.48. The cost...
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