HomeMy WebLinkAboutPresentation_Workshop_7/13/2023Village of Tequesta Council July 13, 2023Rodney Louis, Director of Risk Management ServicesPresented by:Market UpdateProperty Insurance –Workshop
Current Property Program Overview 2 Workers’ Compensation insurance o Auto Liability & Physical Damage o Cyber Liability o Public Official Liability o Law Enforcement Liability o General
Liability o Part of larger package that includes:Available only to Public entities in FLUnderwritten and managed by the Florida League of CitiesFlorida Municipal Insurance Trust
(FMIT)•
Current Property Policy Coverage 3 Synergy-key Disaster Recovery Services -TurnBusiness Income & ExpenseOpen (PITO)-the-in-Scheduled Property-NonEarth MovementExcess Floodmotorized
vehicles & trailers, marine vehicles under 26’licensed -equipment and machinery, non–Inland Marine Total Insured Value (TIV)–Building and Contents coverage Property Policy Form specifically
includes:•
Municipal Entity Comparison 4 Hardened (little risk of Wind/Fire/Flood)Low value/PITOinsure specific assets-Some self•Inability to insure full TIV (capacity limitations)Multiple carriers
elect to participate in portion of riskProgram (aka Tower)Very few insure via Standard Market Layered •FMIT, PGIT, PRMgovernmental trusts:Most cities are insured via one of the FL
•
What to Expect in 2023 5 Inflationary factors driving new rating environmentInvestment losses o Reduced capacity o Reinsurance costs at an all time highPGIT incurred $50MM in losses
o FMIT incurred $100MM in losses o$60B in insured losses ($110B+ total)all time behind Katrina & Harvey with estimated rd Will rank 3 o Hurricane Ian was devastatingmarkets estimated
at +100%Commercial Property increases in Catastrophic •
What to Expect in 2023 200%FMITCentral Broward–Municipal Entity #6 100%FMITSoutheast Martin–Municipal Entity #5 200%FMITSoutheast PBC–Municipal Entity #4 125%FMITSoutheast PBC–Municipal
Entity #3 100%PGITCentral PBC–Municipal Entity #2 205%FMITNortheast PBC–Municipal Entity #1 200%FMITTequestaRenewal IndicationCarrierEntity Name 6 Benchmark comparison (does not include
TIV increases)175%-Average ~150% 225%-Government Trust indications: 75% •
What to Expect in 2023 7 Estimated payroll adjustments will also factor into this renewal o will reduce the trend increasedecreased to 1.07 versus 1.13 in the prior rating period, which
The Village’s Experience Modification factor for 10/1/23 has o 5%-Workers’ Compensation: 37%-Auto Liability & Physical Damage: 5less Police)revenues/payrolls, 4% (plus adjustments
to expected -General Liability: 2FMIT has provided indications for the remaining P&C •
Steps Tequesta Has Taken/Can 8 Market Bid•Potential Maximum Loss (PML) Study•16% premium deduction-10% 8% premium reduction-7.5% Optional Named Storm deductible increase•$100K-Other
Perils (AOP) deductible Removed coverage for assets valued less than All •Conducted Independent Appraisal•Consider
Discussion 9 Questions & Answers