In a recent government meeting, city officials discussed the upcoming renewal of insurance policies set to take effect on July 1. The meeting highlighted the efforts of the city staff, particularly Stacy and Ron, in facilitating a smooth renewal process amidst challenging market conditions.

The insurance market has been under pressure, with 2023 witnessing a record 28 weather-related disasters in the U.S., each causing damages exceeding $1 billion. This trend has significantly impacted insurance rates, which have been on the rise for 26 consecutive quarters, marking the longest hard market cycle in recent history. Despite these challenges, the city’s insurance renewal is projected to see an overall premium increase of 11%, primarily driven by an increase in property values rather than a significant rate hike.

The property insurance rate is expected to rise by just over 3%, a stark contrast to the 30% to 60% increases faced by many public entities in Iowa. The city has managed to maintain a flat net rate per $100 of property coverage, a notable achievement given the current market conditions. Additionally, the total insured values have increased by 11%, reflecting inflationary adjustments and the addition of new properties.

The meeting also addressed other coverage areas, including a 5% increase in excess liability coverage and a 34% reduction in cyber insurance premiums, attributed to a more competitive market. Workers' compensation insurance saw a 4% increase, with officials noting the importance of monitoring past claims and potential legislative impacts on future rates.

Overall, city officials expressed satisfaction with the renewal process, emphasizing the importance of strategic planning and collaboration in navigating the complexities of the insurance market. The transition to a July 1 renewal date is expected to streamline budgeting and planning for the city moving forward.