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City hears presentation on property/casualty and workers’ comp renewal; staff recommends switching to Travelers with a 3-year rate guarantee
Summary
IMA Financial presented a proposal to align municipal property and casualty renewals on Sept. 1 with Travelers, citing roughly $160,000 in annual premium savings and enhanced coverage terms; Travelers offered a three-year rate guarantee subject to loss-ratio conditions.
The council received a presentation from Kyle Zigler of IMA Financial on Aug. 18 outlining a proposed renewal and consolidation of the City of Sedalia’s property, casualty and workers’ compensation insurance program. Zigler said the proposal would move coverages to Travelers with a common Sept. 1 renewal date, enhanced coverage terms, and a three‑year rate guarantee so long as the city’s loss ratio remains within agreed thresholds.
Financial effect: The side-by-side comparison shown to the council indicated an estimated premium savings in the range of $160,000 year-over-year (presentation slides referenced a figure near $160,167). The presenter noted that the existing liability program with MOPERM carries a three-year re-entry restriction and that the Travelers rate guarantee is intended in part to mitigate that drawback.
Key contract features: The Travelers arrangement as described would cap rate increases at 5% annually during the three-year guarantee if the city’s loss experience does not exceed the carrier’s loss-ratio threshold. Several coverage enhancements were noted (general liability limits, increased property/peril deductibles, and work-comp limits moving from a prior $500,000 instance to $1,000,000 for certain lines).
Council response and next steps: Council members asked clarifying questions about the savings figure and the presenter explained the final terms were closer to $160,000 in annual savings rather than an initially cited $192,000. Staff signaled they would proceed with the renewal process and finalize terms with Travelers subject to standard procurement and policy-execution steps.
