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HomeMy WebLinkAbout95.PPP Alliant - Insurance© 2015 Alliant Insurance Services, Inc. All rights reserved. Orange County Sanitation District Administration Committee Meeting May 13th 2015 Agenda Item No. 5 2015-16 Operational Insurance Renewals © 2015 Alliant Insurance Services, Inc. All rights reserved. Presentation Outline Major Program Renewals ▫Public Entity Liability ▫Excess Workers’ Compensation ▫Property and Boiler & Machinery New Coverage Proposal ▫Earthquake Questions © 2015 Alliant Insurance Services, Inc. All rights reserved. Public Entity Liability Coverage for damages to third parties arising District negligence. Includes: ▫General Liability ▫Automobile Liability ▫Public Entity Errors and Omissions −Professional Liability −Directors and Officers Liability −Employment Practices Liability All cover provided on an “Occurrence” Basis © 2015 Alliant Insurance Services, Inc. All rights reserved. Public Entity Liability –Limits and Retentions Policy Limits –Per Occurrence/Annual Aggregate ▫General:$ 40MM/$40MM ▫Automobile:$ 40MM/$40MM ▫E&O/D&O/EPL: $ 40MM/$40MM Policy Retentions ▫General:$ 500,000 ▫Auto:$ 500,000 ▫E&O/D&O/EPL: $ 500,000 Expiring Premium: $ 384,440 © 2015 Alliant Insurance Services, Inc. All rights reserved. Self Insured Retention $500,000 Great American Assurance Company Policy # EXC 1862580 $10,000,000 xs 30,500,000 Security National Insurance Company Policy # SPP1011335 03 $10,000,000 xs $500,000 Berkley National Insurance Company Policy # CEX09600351-01 $20,000,000 xs $10,500,000 Excess Liability –Structure Chart © 2015 Alliant Insurance Services, Inc. All rights reserved. 2015 Liability Marketing LEAD MARKETS RESPONSE Security National Ins. Co. (ANML)$10M x $500,000 SIR – Not to Exceed $245,000 Berkley Incumbent – Quote Pending Great American Incumbent – Quote Pending ACE Public Entity Response Pending – Anticipated Response 5/15/15 AIG Response Pending – Follow up 5/13/15 Allied Public Risk (AWAC)Response Pending – Follow up 5/13/15 Alteris Public Risk Solutions (Argo)Declined - cannot compete Brit Response Pending – Follow up 5/13/15 Catlin Declined – public entity in CA is not within carrier’s appetite Civic Risk Response Pending – Follow up 5/13/15 Genesis Response Pending – Follow up 5/13/15 HCC Response Pending – Follow up 5/13/15 Markel Declined – cannot compete Munich Reinsurance American Risk Declined – cannot compete, pricing would be at least 35% higher One Beacon Declined – public entity in CA is not within carrier’s appetite Old Republic Specialty Insurance Declined – cannot compete Travelers Declined – cannot compete © 2015 Alliant Insurance Services, Inc. All rights reserved. 2015 Liability Marketing EXCESS MARKETS RESPONSE General Star Declined – not willing to provide excess coverage when ANML form is underlying Berkley Incumbent – Quote Pending Great American Incumbent – Quote Pending ACE Westchester Specialty Group Response Pending – Follow up 5/13/15 AIG Response Pending – Follow up 5/13/15 Alteris Public Risk Solutions (Argo)Declined - cannot compete Arch Response Pending – Follow up 5/13/15 Aspen Response Pending – Follow up 5/13/15 AWAC Response Pending – Follow up 5/13/15 AXIS Response Pending – Follow up 5/13/15 Berkshire Hathaway Specialty Ins.Response Pending – Follow up 5/13/15 Civic Risk (Scottsdale Paper)Response Pending – Follow up 5/13/15 Colony Response Pending – Follow up 5/13/15, carrier would only consider the highest/top layer of limits Cover X Response Pending – Follow up 5/13/15 Houston Casualty Company Response Pending – Follow up 5/13/15 Ironshore Response Pending – Follow up 5/13/15 Markel Response Pending – Follow up 5/13/15 Munich Reinsurance American Response Pending – Follow up 5/13/15 Navigators Response Pending – Follow up 5/13/15 RLI Response Pending – Follow up 5/13/15 Torus Response Pending – Follow up 5/13/15 © 2015 Alliant Insurance Services, Inc. All rights reserved. Liability Marketing Summary OCSD Package of Insurance Marketed to: ▫17 Lead Carriers ▫21 Excess Carriers ▫29 Separate Insurance Companies ▫7 Excess markets have for various reasons (Operations/Pricing) ▫6 Excess markets have maximum capacity of $10 mil ▫3 Excess markets prefer to attach at $25 mil Results ▫“Not to Exceed” Cost $403,662 © 2015 Alliant Insurance Services, Inc. All rights reserved. Excess Workers’ Compensation Coverage for injuries to employees while in the course and scope of employment ▫Limits Statutory ▫Retention $750,000 ▫Payroll $65,431,701 ▫Expiring Premium $222,527 © 2015 Alliant Insurance Services, Inc. All rights reserved. Self Insured Retention $750,000 National Union (AIG) Statutory xs of $50,000,000 CSAC-EIA Pool Difference Between Member SIR and $5MM Agg Stop Provided by Wesco (AmTrust) ACE American Insurance Company $45,000,000 xs $5,000,000 Excess Workers’ Comp –Structure Chart © 2015 Alliant Insurance Services, Inc. All rights reserved. Excess Workers Comp -Marketing Markets Status Notes Arch Awaiting Quote In the past, could not compete with EIA Midwest Employers Declined Can't attach at $750k, or provide stat limits. Tower Declined Will only do short buffer layers - did not approach Safety National Declined "Have had no success competing with EIA - only succesful on 1 account in 20 years." US Specialty Reviewing Will only quote on a cash flow basis Midlands (NY Magic)Awaiting Quote Maximum limits are $50 million - Need to build to Stat. XL Declined Can’t write monoline coverage Liberty Declined Not actively pursuing stand alone coverage ACE Incumbent Excess Carrier for EIA AIG Incumbent Excess Carrier for EIA © 2015 Alliant Insurance Services, Inc. All rights reserved. Excess Workers’ Compensation Incumbent CSAC EIA –Seeking an increase of 8% Competition Submitted to 8 Other Insurance Companies Declinations 5 Declinations for various reasons from “not competitive” to not willing to offer Statutory limits or desired attachment Pending 3 Carriers are working to offer quotes Not to Exceed: $240,000 © 2015 Alliant Insurance Services, Inc. All rights reserved. Property Insurance -Overview Coverage for damage to real and personal property of District, or others where required. Total Insurable Value:$1,904,048,692 Policy Limit:$1,000,000,000 Key Sublimits ▫Boiler & Machinery:$100,000,000 ▫Business Interruption:$100,000,000 ▫Flood Zones A&V:$150,000,000 ▫Flood All Other Zones:$300,000,000 ▫Course of Construction:$50,000,000 ▫Terrorism $500,000,000 Deductible:$250,000 © 2015 Alliant Insurance Services, Inc. All rights reserved. Property Structure Chart $1B $200M XS $800M $800M $500M $400M $125M XS $275M SWISS RE $275M $75M XS $200M $200M $175M XS $25M $125M $25M XS $100M $37.5 XS $87.5M $75M XS $50M $100M XS $25M AXIS UK $100M $50M XS $50M $37.5M XS $50MLLOYD'S IRONSHORE $50M $25M XS $25M $25M $15M $2.5M LLOYD'S LLOYD'SLANCASHIRE PARTNER RE ACE EUROPEAN GROUP AXIS SPECIALTY LE X I N G T O N LEXINGTON - 70.00% AWAC ACE EUROPEAN AXIS UKENDURANCELANCASHIRE SRU - NAPHILA SCOTTSDALE LLOYD'S $75M XS $125M GEPSWISS RE $75M XS $125M LANCASHIRE $125M XS $275M ESSEX ARCH ONE BEACON - HOMELAND $75M XS $200M MAXUM SPECIALTY IRONSHORE USA $125M XS $275M AXIS UK $22.5M XS $2.5M $22.5M XS $2.5M $75M XS $125M LEXINGTON $200M XS $800M SWISS RE XL AMERICA $100M XS $400M $300M XS $500M LEXINGTON/LLOYD'S LLOYD'S $75M XS $50M ENDURANCE LLOYD'S LEXINGTON $75M XS $200M IRONSHORE LEXINGTON © 2015 Alliant Insurance Services, Inc. All rights reserved. Property Marketing Incumbent –Public Entity Property Insurance Program A consortium of 19 carriers led by AIG & Lloyd’s of London in a layered and quota share program. Expecting flat rate renewal as worst case scenario. Competition ▫Travelers ▫Zurich ▫Hartford ▫MunichRe ▫SwissRe ▫Affiliated FM PENDING ▫6 Awaiting feedback from carriers © 2015 Alliant Insurance Services, Inc. All rights reserved. Major Programs -Rate History © 2015 Alliant Insurance Services, Inc. All rights reserved. Earthquake Discussion Current Quote ▫Coverage for seven key buildings located at both Plants 1 and 2 valued at $61MM ▫$25,000,000 Limit ▫Carriers: −Princeton: 10,000,000 (40%) part of $25,000,000 −Everest: 8,750,000 (35%) part of $25,000,000 −Gen. Security: 6,250,000 (25%) part of $25,000,000 ▫Premium: $88,587 ▫Deductible 5% © 2015 Alliant Insurance Services, Inc. All rights reserved. Questions? •Optional Retentions •Carrier Strength •Carrier Regulations •Multi-Year Policies