TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve Renewal of Property and Casualty, Accidental Dismemberment (AD&D) Insurance With Gehring Group a Risk Strategies Company for Fiscal Year 2024-2025 in the Amount of $2,333,266.
Recommended Action
Approve Renewal of Property and Casualty, Accidental Dismemberment (AD&D) Insurance with Gehring Group a Risk Strategies Company for Fiscal Year 2024-2025 in the amount of $2,333,266.
Background Information
The Gehring Group provides the City Insurance Broker services for property and casualty insurance and risk management consulting. Gehring Group as the selected agent/broker for the City selected the Property, Casualty and Worker’s Compensation insurance. The insurance proposals for Fiscal Year 2024-2025 have minimal changes in the scope of coverages.
The Commercial Property market in Florida today is experiencing somewhat of a softening. Last year, the Property market was extremely hardened because of ongoing and increasing annual catastrophic losses; the US alone experienced 31 independent catastrophic events each valued at over $1 billion in losses in 2023. Reinsurers significantly modified their underwriting practices, and prediction models have been updated to capture more relevant loss exposure factors, lending to unprecedented premium levels that affected the primary property market. Initially, reinsurance premiums and the commercial property market were forecast to reach price increases up to 25% in catastrophic markets, without property value or loss consideration. However, the market corrections made last year have bolstered an increase in capital flowing into the reinsurance market, and the Florida property market has seen the addition of several new carriers, which has lent to rate stabilization within the region.
Gehring Group was able to renew the City’s property and casualty insurance program for Fiscal Year 2024-2025 at an overall program cost not to exceed $2,333,266, a $61,902 or 2.7% increase.
The Broker Term is for a period of three (3) years from October 1, 2023, through and including September 30, 2026, with an option to extend/renew for three (3) additional one (1) year terms by mutual agreement. However, the policies must be negotiated and renewed on an annual basis.
The Renewal of Property and Casualty, Accidental Death and Dismemberment (AD&D) Insurance with Gehring Group a Risk Strategies Company for Fiscal Year 2024-2025 have been reviewed by the City Attorney and are legally correct as to form.
Strategic Plan
Financially Responsible City Providing Quality Municipal Services
Financial Impact
In Fiscal Year 2024-2025, this program is budgeted in account 530-0900-513-45-00 in the amount of $2,333,266, contingent upon approval of the Fiscal Year 2025 budget.
Procurement
Property and Causality Insurance Coverage and Risk Management Services were procured through a competitive process by Gehring Group Inc. As the selected Insurance Broker, they obtained the property and casualty insurance pursuant to Section 2-405 Competitive Sealed Proposal process of the City of North Port Procurement Code.
Vendor Info:
The Gehring Group Inc.
Gehring Group A Risk Strategies Company
3500 Kyoto Gardens Drive
Palm Beach Gardens, FL 33410
Attachments:
1. Property & Casualty Renewal Evaluation
2. AmWins - Property Quote
3. AmWins Terrorism Risk Ins. Act Disclosure
4. Everest Terrorism Risk Ins. Act Disclosure
5. AXIS Terrorism Risk Ins. Act Disclosure
6. Starstone Terrorism Risk Ins. Act Disclosure
7. Terrorism Risk Ins. Act Disclosure
8. NAV-ML Terrorism Risk Ins. Act Disclosure
9. SOMPO Terrorism Risk Ins. Act Disclosure
10. CHUBB Terrorism Risk Ins. Act Disclosure
11. Property, Inland Marine Accords
12. Chubb-Illinois Union - Pollution Legal Liability Renewal Quote
13. Chubb-Illinois Union - Pollution Legal Liability Terrorism Risk Ins. Act Disclosure
14. Preferred Government Insurance Trust - SIR
15. Preferred Government Insurance Trust - Renewal for Liability and Workers’ Comp
16. Preferred Government Insurance Trust - Signature Page
17. Preferred Government Insurance Trust - Uninsured Motorist Form
18. Preferred Government Insurance Trust - Liability and Workers’ Comp Quote
19. Florida Division of Corporation Documents
Prepared by: Sandy Knowles, Risk and Benefits Manager
Department Director: Christine McDade, Human Resources Director