R2023-187 Resolution Authorizing Property Insurance Coverage for the City of Decatur, Illinois for the Policy Period October 1, 2023 to October 1, 2024

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LETTER to the DECATUR CITY COUNCIL Finance Department DATE: September 18, 2023 TO: Honorable Mayor Moore Wolfe City Council FROM: Scot Wrighton, City Manager Ruby F. James, CFO& City Treasurer Jenifer McCoskey, Risk Management Coordinator SUBJECT: Items 3 through 10 Risk Management Property, Liability Workers Compensation for the City with Policy Year Starting October 1 SUMMARY RECOMMENDATION City Administration recommends City Council approval of the attached resolutions authorizing insurance coverage for property and casualty, liability, and workers compensation for the period October, 1, 2023 through October 1, 2024. BACKGROUND Hurricanes, flooding and Hawaiian wildfires, along with continuing inflationary pressures continue to drive a significant shift in the risk management profiles and risk coverage assessments in the insurance marketplace where the City obtains protection. Inflation and lack of building supplies have caused property carriers to build in premium increases to reflect undervalued properties. Carriers are scrutinizing clients' Statements of Values, and in some cases demanding that values be increased by double digits in 2023-2024 renewals. To obtain better pricing for property & liability insurance and excess property coverage, we are bidding with a second carrier. Concerning Commercial Package renewal (1St level property, casualty, and liability coverage), all carriers are requiring a minimum deductible of$250,000 for all lines of coverage. In addition, the underwriters are scrutinizing the property values and if they are not in line with reputable services such as Marshall & Swift, the carriers will contemplate higher property rates to reflect what they believe are under-valued properties. The Cyber market is very concerned about systemic cyber risk, cyber underwriting practices, and where hackers may hit next, as ever escalating ransomware and cyber security threats continue to plague the cyber insurance market. Cyber insurance companies continue to require more monitoring software in order to obtain insurance and the City is meeting the requirements for cyber monitoring.