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City counsel says staff is working to avoid last-minute emergency insurance purchases
Summary
Chief Counsel Ed Rucker told the committee staff is working with broker Lockton to avoid the past practice of emergency ordinances in June for the city's insurance renewals; he said staff expects increases at or below the 15% budgeted amount and will continue outreach, but carriers often delay bids until late in the cycle.
Ed Rucker, chief counsel for management and operations in the law department, updated the Finance and Budget Committee on May 13 about the city's insurance procurement cycle and efforts to avoid last-minute emergency ordinances.
Rucker said staff has scheduled meetings with Lockton, the city's broker, to update marketing and to encourage carriers to bid earlier. "One of the requests we made of Lockton this year was that we avoid this last minute June rush," Rucker said. He added that Lockton cannot force carriers to bid earlier because insurers decide when to respond and "they're risk adverse...the longer they can wait, the better off they feel about making the offer to us."
Rucker told the committee the city budgeted for a roughly 15% insurance increase and Lockton believes the actual increase will be at or below that amount. He listed the types of coverage in play as property, casualty, health and workers' compensation and said staff will continue to pursue earlier responses to avoid emergency ordinances.
No formal council action was taken; the comments were provided as a staff update and staff said they will continue negotiations with Lockton and monitor market responses.
