City hears insurance renewal presentation; overall premium rises about 5.8%

Jeff Kronister, an insurance representative for the city’s risk manager, presented the proposed 2025 liability, property, auto and cyber renewals and recommended the carrier BMC, noting that BMC is Midwest-focused and has limited exposure to coastal storm losses.

Kronister outlined industry pressures: an above-average named-storm year in 2024 (staff cited 18 named storms) produced large insured losses; rising reconstruction costs and supply-chain constraints are pushing replacement values and premiums upward. Staff noted the city’s property replacement figure moved from roughly 23.6 to 25.0 (replacement cost), and Kronister said the city’s overall renewal premium rose from $2.22 to $2.35, a 5.76% increase. Cyber insurance was described as fairly flat (around a 4% increase), while auto premium drivers were described as national: distracted driving, higher replacement costs, and flood-impacted vehicle shortages that have increased replacement costs — Kronister estimated auto-related rate increases near 20% that in aggregate produced a modest bottom-line premium increase.

Board members had an opportunity to ask questions about deductible options (e.g., wind/hail deductible buy-down to a $25,000 flat with an additional premium cost) and fleet-age issues tied to recent leasing replacement of older vehicles. The presentation concluded with no immediate objection to staff’s recommended renewal and carrier selection.