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Owasso council approves insurance renewals after staff flags rising premiums
Summary
Council approved renewals for specific excess workers' compensation, property casualty, and vehicle collision/liability insurance after staff explained premium increases driven by payroll changes, added property values and industry rate adjustments.
City staff presented three insurance renewals on Oct. 21 and the council approved all three contract renewals as recommended.
Jeff Acheson explained the city's specific excess workers' compensation coverage renews annually; the current carrier Midwest Employers Casualty Company (MECC) quoted $132,153 for the coming year. Acheson said the increase is attributable to a steady per‑$100 payroll rate applied to a higher estimated payroll rather than a carrier rate escalation.
Staff next presented a property casualty renewal from Oklahoma Municipal Assurance Group (OMAG) quoting $316,696. Staff said the increase reflected added properties, higher property and contents values and a pool‑wide 15% rate adjustment OMAG announced in June.
For vehicle collision and liability coverage OMAG quoted $53,423, up from the current year's premiums. Staff attributed the increase to a 25–35% pool adjustment for vehicle coverage, the city's recent claims experience and additions to the fleet. Staff told council that vehicles valued over the city’s self‑insured threshold are fully insured through OMAG and that the city remains self‑insured for vehicles under the threshold.
Councilors asked clarifying questions about why rates rose and whether the increases were typical; staff said the property and auto adjustments were larger than typical and tied to recent claim experience and pool adjustments.
The council approved each renewal and authorized execution of the necessary documents, with recorded affirmative votes in the minutes.
