Item 27 - ICRMA Excess Liability Insurance Premiums

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Human Resources www.santa-ana.org/hr Item # 27 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report September 7, 2021 TOPIC: ICRMA Excess Liability Insurance Premiums AGENDA TITLE: Approve Payment of Increase in Initial General Liability Excess Insurance Premiums to Independent Cities Risk Management Authority (“ICRMA”) for Fiscal Year 2021-22 (Non-General Fund) RECOMMENDED ACTION Authorize increase of payment of $175,467 for the City’s General Liability excess insurance premiums. DISCUSSION On June 15, 2021, the Human Resources Department’s Risk Management Division submitted a staff report for approval regarding ICRMA excess insurance and additional ancillary coverage premiums for FY 2021-22. The staff report reflected the premium amounts that had been approved by the ICRMA Board of Directors at the June 10, 2021 meeting, including each member city’s portion for payment. Prior to the insurance coverages being bound, the Broker was notified that one of the carriers, Old Republic, was reducing its participation in coverage, falling to the responsibility of the pool members. The Broker team was able to obtain a combination of additional carriers to quote the coverage reduction, as well as the remainder of the pool exposure. This change has resulted in an increase in insurance premiums in the amount of $175,467 for FY 2021-22 (see graph below illustrating the changes). 2021/2022 Approved Program 2021/2022 Proposed Adjusted Program $5M xs $30M – Hallmark $5M xs $30M – Hallmark $10M xs $20M – Scor $10M xs $20M – Scor $2M xs $18M – ACE American/Chubb $3M xs $15M – Everest $2M xs $13M – Allied World Assurance Company $11M xs $9M – Old Republic (41.67%) / TBD (58.33%) $4M xs 9M – Old Republic $5M xs $4M – Safety National $5M xs $4M – Safety National $2M xs $2M – Pool SIR - QBE $2M xs $2M – Pool SIR – QBE