9.C.
City Council Meeting - FINAL
- Meeting Date:
- 06/21/2022
- From:
- Maria Robinson, Risk Management Director
Information
TITLE:
Consideration and Approval of Contract: FY 2022-23 Insurance Program Renewal
STAFF RECOMMENDED ACTION:
Accept the renewal premiums submitted by the Arizona Municipal Risk Retention Pool (AMRRP) for General Liability, E&O, SAM, Property, Auto, Marine, Crime, Cyber, Excess, and Worker’s Compensation coverage; Chubb Limited for Airport Liability; Aon Risk Insurance Services West for International Travel; and Industrial Commission of Arizona to fund the Firefighters Presumptive Cancer Claims.
Executive Summary:
In FY2021-22, the City of Flagstaff expended an estimated $2,060,665 to cover all the City’s exposures with the previously mentioned entities. If renewed, the new estimated premiums will total $2,172,062. This increase will be offset by a dividend AMRRP declared on May 10, 2022. Staff recommends approval of the renewal offered by the current carriers.
Financial Impact:
No increased financial impact.
Policy Impact:
None
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Effective Governance
Has There Been Previous Council Decision on This:
No
Background and History:
In 2020, The City of Flagstaff marketed all lines of primary insurance and, apart from Airport and International Travel coverage, moved all insurance policies to AMRRP.
One advantage of insuring with AMRRP is that most years, dividends are issued based on net financial performance of the pool. This year was no different, the pool issued a dividend of $249,450 to the City of Flagstaff, which the City has elected to take as a credit payable in July of 2022.
Following are estimated premiums for FY22/23:
One advantage of insuring with AMRRP is that most years, dividends are issued based on net financial performance of the pool. This year was no different, the pool issued a dividend of $249,450 to the City of Flagstaff, which the City has elected to take as a credit payable in July of 2022.
Following are estimated premiums for FY22/23:
- AMRRP Liability Insurance Coverage - $1,004,825 (increase of 5% from previous FY)
- AMRRP Excess Insurance - $132,376 (decrease of 11% from previous FY)
- Workers Compensation estimate - $788,861 (based on employee count)
- Airport and International Travel estimate - $46,000
- Industrial Commission of Arizona fee estimate (based on population, new in FY21) - $200,000