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� Gallagher <br /> tnaurancc R�sk M,anagement Cortsutt�ng <br /> ATTN:Gregg Zientara September 11,2019 <br /> Re:2019 Insurance Renewal <br /> In the 1980's the IML created the IMLRMA in orderto provide insurance for municipalities who could no <br /> longer find insurance due to the commercial insurance backing away from police and fire associated <br /> risks.After servicing hundreds of municipalities throughout the state,of all sizes,the group saw a big <br /> change in the early 2000's when the commercial insurance marketplace shifted and drew interest from <br /> multiple insurance carriers to regain their footing in the municipal space.Since then hundreds of <br /> communities have withdrawn from the IMLRMA to have their own program or to join more <br /> homogenous pools that fit their specific community.The members that left and are leaving IMLRMA <br /> have been driven by cost savings,enhanced coverage, higher limits,flexibility,and service team <br /> expertise. Communities over 10,000 in population also saw increased market leverage by not sharing <br /> risk with communities that have polar opposite risk profiles.When looking at the 75 largest <br /> communities in Illinois, IMLRMA insures none of them.The 17th largest municipality, City of Decatur, <br /> remains in an advantageous position for insurance and risk management furnished by Gallagher. <br /> ➢ Gallagher constantly shops the City's program to multiple insurance carriers to ensure the most <br /> competitive and responsible program is put forward. IMLRMA provides 1 annual option,with no <br /> option to market.This severely cripples a City after a year of frequent or severe losses. <br /> ➢ Your Gallagher program limits are$15M per occurrence with no annual cap,whereas IMLRMA <br /> provides only$8M per occurrence and is capped at$16M for the year. <br /> ➢ Cyber attackers have targeted municipalities throughout the country,with average claims <br /> exceeding$200,000.Your Gallagher program provides$1M of coverage,whereas IMLRMA <br /> provides only$100,000 and is capped annually at$100,000.Gallagher's minimum <br /> recommendation/option for all clients is$1M. <br /> ➢ Your Gallagher Crime policy provides$500,000 of coverage,whereas IMLRMA provides only <br /> $100,000. <br /> ➢ The flood and earthquake coverage in IMLRMA is$76.5M shared amongst all of its' members, <br /> whereas your Gallagher program provides$11,150,000 of coverage to the City. <br /> ➢ The deductibles offered are as follows: <br /> Galla�her IMLRMA <br /> Liability:$150,000 $f} <br /> Property:$150,000 �5�{) <br /> Work Comp:$500,000 $0 <br />