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. � t <br /> DEPARTMENT OF FINANCIAL MANAGEMENT <br /> RISK MANAGEMENT DIVISION <br /> MEMORANDUM NO. 2005-054 <br /> Se tember 14 2005 <br /> P � <br /> TO: The Honorable Mayor and City Council Members <br /> FROM: Steve Garman, City Manager Y11�,�. �Y� <br /> Ron Neufeld, Director of Financial anagement <br /> J. Barry Leonard, Risk Manager <br /> SUBJECT: PROPERTY & CASUALTY SELF-INSURANCE RENEWAL <br /> Every three years, we request bids on our Property and Casualty self-insurance program <br /> costs. We sent letters to 12 companies who had expressed an interest in bidding on the program. <br /> We selected three companies from this group based on various criteria, such as experience with <br /> municipal self-insurance programs for cities of our size. <br /> The three companies are: Aon, a national broker; CCMSI, a regional agency in Danville; <br /> and Dimond Brothers, a local agency in Champaign. The three companies, plus the incumbent, <br /> A. J. Gallagher, were provided with needed underwriting data, such as claims, current coverages <br /> and limits. Each company was also assigned specific insurers and support service markets. The <br /> proposals were due to us September 9, 2005. <br /> The number of insurers for a program such as our is very small. One proposer was <br /> unable to get any quotations from the group of insurers they were assigned. A second proposer <br /> failed to provide any quotes. <br /> Below is a comparison of the expiring period and the two remaining proposals: <br /> ITEM EXPIRING A J GALLAGHER DIMOND <br /> Premiums 480,686 488,500 891,796 <br /> Support 110,305 111,588 Included <br /> Services <br /> Broker Fee 40,000 40,000 Included <br /> TOTAL $630,991 $640,088 $891,796 <br /> Staff recommends that we select A. J. Gallagher for the new three-year program, <br /> beginning October 1, 2005. <br />