Exh 4DAGENDA ITEM #4D
OCTOBER 8, 2001
ITEM:
SUBMITTED BY:
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
Renewal of City Insurance (excluding Employee Benefits)
George Foster, Human Resource Manager
October 2, 2001
BACKGROUND: Effective October 1, 1999, the City awarded it's non-benefit insurance
based upon the formal bid process and receipt of from 1 to 7 bid proposals
being received for each of the insurances bid. We have now received the
October 1, 2001 renewal rates for the City's insurance as follows:
Twe 10/Ol/00 i0/O1/Ol
RMA Automobile 35,343 48,654 37.66
RMA Property 33,125 ., 41,163 24.27
RMA General Liability 39,462 46,601 18.09
RMA Pub Off & Emp Liab 17,171 25,434 48.12
RMA Environmental 7,315 30,220 313.12
FMIT Workers' Comp* 158,710 200,988 26.60
FMIT Fiduciary 3,279 3,520 7.35
LB Bryan Police Statutory 624 648 3.85
RMA CrimefDishonesty 810 810 0.00
Totals: 295,839 398,038 35.55
FUNDING: As insurance renewal rates are not received until September, an estimate of
$384,591 (+30%) was included within the FY2001G2002 budget. A budget
modification will be submitted during FY2001/2002 for the additional
$13,447.
RECOMMENDATION: Above provided for information only. City staff is currently reviewing
changing deductibles for the above policies versus savings in premiums.
Additionally City staff is preparing a RFP to bid out the above insurance.
ATTACHMENT: October 2001, Explanation of Increases.
CITY MANAGER: _ .....
AGENDA ITEM #4D
OCTOBER S, 2001
OCTOBER 2001
EXPLANATION OF INCREASES
General Comments:
- Nationally, loss ratio's for general liability is in the 50% range, Public Officials
liability is in the 75°lo range, automobile in the 50% range, and property is in the
range of 45% to 55%.
- Florida public entities have seen an average price increase of 50% and rate increase
of 30%.
- Many insurance companies will not write property coverage within 30 miles of the
coast.
- Many insurance companies will not write property coverage on the.Eastern coast of
Florida.
Automobile (+37.66%):
- Loss ratio of 68.33%
- Number of vehicles increased by 14.5%.
Property (+24.27%):
- Loss ratio of 4.3%
- Appraisal value of buildings and contents increased values by 23.4%.
Liability: (General, Law Enforcement, and Public Officials and Employment Liability:
- Combined increase of +27.2% (General/Law Enforcement of 18:09% and Public
Officials and Employment Liability of 48.12%)
- Loss ratio of 59.16%
- Several caseSpending.
Environmental:
- Loss ratio of 0%.
Workers' Compensation:
- 10/2000 - 04/2001
- Current loss ratio of 98%
- Five cases still open
- One current open case over $50,000
- Two current open cases, each over $26,000
- 10/1999 - 09/2000
- Current loss ratio of 3.9%
- Two cases still open
10/1998 - 09/1999
- Current loss ratio of 137.9%
- Three cases still open
- One open case over $118,000
- One closed case over $50,000