City assesses property and casualty insurance renewal with Travelers amid rising costs

The Salina City Commission held a study session on April 14, 2025, focusing on the upcoming renewal of the city's property and casualty insurance policies, which are set to expire in June. City Risk Manager Nancy Schussler introduced experts Bob Charlesworth from Charlesworth Consulting and Mark Skidmore, president of Iron Insurance Partners, who provided insights into the current insurance marketplace.

Skidmore began by discussing the state of the insurance market, highlighting the significant impact of inflation and an increase in weather-related events. He noted that in 2024, there were 27 weather events that each exceeded one billion dollars in damages, a stark contrast to the historical average of nine events per year from 1980 to 2024. The California wildfires in January alone accounted for an estimated $50 billion in damages, indicating a troubling trend for the insurance industry.

The discussion also covered the rising costs associated with casualty insurance, which includes liability and auto insurance. Skidmore pointed out that litigation is driving up claims costs, as more individuals seek legal recourse following accidents. This trend has resulted in increased premiums for the city, with a five-year snapshot showing a doubling of insurance costs.

Key issues facing the city's insurance renewal include unresolved drainage problems related to the city's levee systems. Skidmore warned that if these issues are not addressed, the city may face exclusions in coverage from Travelers, the current insurance provider. Additionally, the city is expected to see increased deductibles for auto physical damage coverage, with some deductibles rising significantly from $5,000 to $25,000, and a catastrophic deductible increasing from $75,000 to $750,000.

Travelers is anticipating a 25% price increase for the city's insurance renewal, alongside these deductible changes. Despite the challenges, Skidmore mentioned that there may be some adjustments in value to help mitigate the impact of inflation.

The meeting concluded with a commitment from city officials to work on resolving the drainage issues and exploring potential alternative insurance markets to better manage costs and coverage. The commission will continue to monitor these developments as they prepare for the upcoming renewal.