Report Prepared by: Rosa M. Kindred-Winzer, Insurance Coordinator
Title
SUBJECT: Property, Boiler and Machinery Insurance Renewal
REPORT IN BRIEF
Consider approving the renewal of the City's policy through Alliant Property Insurance Programs (APIP) at 0.55% premium decrease, amounting to $177,944.01 for program year 2016/2017.
RECOMMENDATION
City Council - Adopt a motion ratifying the renewal of the property and boiler and machinery insurance through the Alliant Property Insurance Programs (APIP), administered by Alliant Insurance Services for the period of July 1, 2016 through June 30, 2017; and authorizing the City Manager to execute the necessary documents.
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ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Refer to staff for further study; or,
3. Take no action.
AUTHORITY
Charter of the City of Merced, Article XI, Fiscal Administration.
CITY COUNCIL PRIORITIES
As provided for in the 2016-17 Adopted Budget.
DISCUSSION
The City of Merced joined the Public Entity Property Insurance Program (PEPIP), a group purchasing program, as authorized by the City Council in 1993. Recently, the PEPIP program changed its name to Alliant Property Insurance Programs (APIP) after having merged with two other large Alliant Insurance purchasing pools. APIP now insures 9,300 members with a total insurable value of $375 billion. The advantage of being a member of a purchasing group is that we are able to capitalize on lower premium rates based on the volume and value (per hundred dollars) of insured property.
The property market has been in a soft cycle for the last year with underwriters giving decreases based on the lack of catastrophe losses worldwide and a record capacity and surplus in the marketplace. The City of Merced has experienced an increase of 2.86% of total insured values amounting to $217,791,029. However, due to the soft cycle marketplace, the City experienced a reduction of 2.25% in account rate per hundred dollars of insured proper...
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