R2016-110 AUTHORIZING CITY MANAGER TO EXECUTE INSURANCE COVERAGE FOR PROPERTY, LIABILITY AND WORKERS COMPENSATION

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City Of Decatur Executive Summary Mr. Gregg Zientara City Treasurer&Director of Finance City of Decatur One Gary, K Anderson Plaza Decatur, IL 62523-1196 RE: October 1,2016 Insurance Program Renewal As we embark upon the 2016/2017 renewal of Property/Casualty and Workers Compensation program, it is important to know and make certain you have the right strategic partners representing the City of Decatur.Arthur J. Gallagher Co. and our service team are your strategic partners. Our background and experience is unparalleled in the industry. Our knowledge of public entity allows us to understand the functions of municipal government. As we began our 2016 marketing efforts early we continued to see the insurance market continues to change. In particular, we have started to see package carriers get increase on risks that have poor losses. From the workers compensation, the marketplace for public entity continues to be difficult, due to poor loss history. We have been seeing more public entities have to place coverage in the Illinois Assigned Risk Pool due to poor loss history. In regards to the City's 2016/2017 Package renewal, it is important to point out that last year as we did a very extensive market analysis.We approached the carriers based upon the savings we negotiated.We moved the coverage to AIX Specialty. For 2016/2017 renewal AIX Specialty gave us a flat renewal, in spite of our property exposures increasing. In respects to the City's Excess Property Coverage our incumbent carrier Travelers Insurance Company gave us a premium decrease, in spite of our property exposures increasing. The City's other renewing ancillary lines of coverage such as your Boiler&Machinery, Cyber Liability, and crime policies those will be renewed on a relatively flat premium basis. In regards to your 2016/2017 workers compensation renewal, we are recommending to the City renew with Liberty Mutual. This is for the fact that the carrier offered us a relatively flat renewal even with the increases in estimated 2016/2017 payrolls. As we discussed in our July meeting,we also will have Gallagher Bassett Services meet with your team in October, to set up the City's loss control/safety program for 2016/2017. On behalf of the entire AJG Co.team,we want to thank you for the opportunity to be of service to the City of Decatur. We have value your loyalty and partnership we have developed over the years. Your Truly, Michael McHugh Ted Miller Jessica Govic Cary Peters Don Smolinski Tammy Whicker Arthur J.Gallagher Risk Management Services,Inc. 2